EG Group has today (7) confirmed that it has agreed to sell its remaining UK forecourt business and certain standalone foodservice locations for a headline consideration of £228 million to co-founder Zuber Issa.
On completion of the transaction, Zuber will step down as Co-CEO of EG Group, with Mohsin Issa continuing to lead the business as sole CEO. Zuber will retain his existing shareholding in the company and remain on the Board as a Non-Executive Director. TDR Capital and Mohsin’s shareholdings in EG Group also remain unchanged.
Lord Stuart Rose, Chairman of EG Group, said, “On behalf of the Board of EG Group, I would like to thank Zuber for his incredible leadership, which has been central to building one of the largest and most entrepreneurial private companies in the UK. EG Group is a UK success story on the global stage that has created significant opportunities for people in Blackburn and other local communities in the Group’s international markets – and pioneered the foodservice model at the roadside.
"With Mohsin remaining as sole CEO, the business is in the right hands and well-placed for further success. I look forward to continuing to work with Mohsin and Zuber on the Board of EG Group as we focus on growing the international business and ensuring EG plays a key role in the energy transition.”
Mohsin Issa CBE and Zuber Issa CBE co-founders and Co-CEOs of EG Group, said, “We have had an amazing journey together building EG Group over the last 20 years and we look forward to continuing to work closely together as fellow Board members and shareholders in EG Group. The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business. We are both – and the wider Board – laser-focused on our key growth opportunities. Encouragingly, following the significant progress to strengthen our balance sheet, we have a capital structure which allows us to take advantage of the opportunities ahead of us continuing to deliver our best-in-class services to our customers around the world.
“Given our shared background in building great businesses, the Board and everyone at EG understand Zuber’s desire to return to his entrepreneurial UK roots by acquiring the remaining UK forecourt business including new-to-industry developments and certain standalone food service concessions – as well as dedicating more time to his family and our charitable activities.
“Following Michael Bradley’s decision to step down from his current Group CFO role, and as we take the opportunity to reshape our leadership team to reflect the continued evolution of the business along with the relative size and importance of the US business, we are delighted that Russell Colaco will join as our new Global Chief Financial Officer, bringing significant international CFO experience. We want to sincerely thank Michael Bradley for his contributions as Group CFO and wish him the very best for the future.”
EG Group will use the proceeds from the divestment of its remaining UK forecourt business to repay debt, further strengthening its balance sheet following the significant deleveraging and refinancing activity last year.
The transaction is expected to complete in the second half of 2024.
As CEO of EG Group, Mohsin will continue to lead the company, working closely with the business’ highly experienced senior management team.
EG Group has also today announced the appointment of Russell Colaco as Group Chief Financial Officer. Russell brings significant global experience as a high-calibre CFO, including in the United States, our largest market.
He will succeed Michael Bradley who has decided to step down to pursue other opportunities.
Zuber and Mohsin co-founded EG Group in 2001 and under their leadership, the business has grown from a single site in the north of England to a global company with more than 5,500 locations.
With a diversified portfolio across three continents – North America, Europe and Australia – EG Group continues to progress its proven strategy to roll out foodservice, and grocery and merchandise to create multi-purpose convenience retail sites across its international estate. EG Group is the third-largest independent convenience retail chain globally, the fifth in the US, and second in Continental Europe and Australia. The business will maintain a presence in the UK through Cooplands, its wholly-owned bakery business, the Group’s rapidly growing charging business, evpoint, and its Starbucks franchise business.
The Group will continue to deliver its strategy to deploy emerging fuels and EV chargers, under its proprietary brand, evpoint, across the existing site network, as well as third-party locations. For the 12 months to 31 December 2023, the Group delivered revenues c. of $25bn and pro forma EBITDA of $1.1bn with a sustainable capital structure to support investment in future growth.
Skadden, ARPS, Slate and Meagher & Flom (UK) LLP, Rothschild & Co., EY, PWC supported EG Group on the remaining UK forecourt transaction.
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