Euro Garages seals Little Chef deal

By Lancashire Business View

06 Feb 2017

Blackburn-based independent petrol forecourt operator Euro Garages has completed its purchase of iconic UK brand Little Chef.

The restaurant chain brand and 78 roadside sites have been bought for an undisclosed sum from Kuwaiti firm Kout Food Group, which took Little Chef over in 2013 in a £15m deal.

The deal follows Euro Garages merger with European counterpart EFR last year which created a new group with around 1,450 locations and an 8,500-strong workforce.

The Little Chef deal is seen as part of the new group’s growth plan to acquire and develop strategically-positioned sites in the UK and Europe.

It also consolidates Euro Garage’s position as the UK’s leading roadside retailer operator.

As part of last year’s merger a new holding company named Intervias was created. It was also announced that Euro Garages would continue to operate under their own names with their current CEO’s and senior leadership teams. Euro Garages and EFR together serve more than six million customers a week through the management and operation of leading retail brands.

Funds managed by TDR Capital and brothers Mohsin and Zuber Issa, the Blackburn-based founders of Euro Garages, would each own 50 per cent of Intervias, it was revealed at the time.

A spokesperson for Intervias, parent company of Euro Garages, said: “We’ve completed the acquisition of two companies from the Kout Food Group, that between them control 78 roadside sites. The acquisition includes usage rights to the Little Chef and related brands. This transaction forms part of our growth plan to acquire and develop strategically-positioned sites, allowing us to bring a portfolio of market-leading brands to consumers and communities across the UK and elsewhere in Europe. It also consolidates Euro Garages’ position as the UK’s leading roadside retail operator.” In a statement about the Little Chef deal Kout said: “As part of its commitment to the communities in which it operates, KFG has ensured continued employment for all its roadside employees and is confident that Euro Garages will continue to develop the strength of the people and roadside brands as well continue to serve their road side customers.”

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