EG Group further expands in US with Schrader Oil acquisition

EG Group said it has entered into an agreement to acquire US forecourt operator Schrader Oil for an undisclosed sum.

A family business founded in 1937, Schrader currently operates 18 convenience retail stores and fuel stations in Northern Colorado and employs 150 people.

EG Group, which has expanded to over 1700 stores in the US, already operates a network of 88 Loaf ‘N Jug convenience stores in Colorado. The retailer said the Schrader sites will be rebranded to Loaf ‘N Jug to provide customers with a consistent service and offer.

“We have a firm commitment to continue growing our presence in the USA, the world’s largest convenience market. We are extremely pleased to have reached an agreement to acquire Schrader Oil as another strong network addition to our existing business,” commented Mohsin Issa, founder and co-CEO of EG Group.

Blackburn-based EG Group has established their North American headquarters in Cincinnati, Ohio in April 2018 after the acquisition of 762 convenience stores from Kroger. The purchase of Schrader will take EG Group’s network to over 1,700 stores across the country, operating in 33 states and retailing over 2.5 billion gallons of fuel with merchandise sales of more than $3 billion (£2.26bn) on an annualized basis.

The group, which recently secured an agreement to buy Asda from Walmart, said the Schrader deal is being funded using existing cash reserves and is not material to its balance sheet. The transaction is expected to close by the end of this year, subject to customary regulatory approvals.