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EG Group

From Wikipedia, the free encyclopedia
This article is about the group founded in 2001. For Zuber Issa's separate firm, seeEG On the Move. For the Australian division, seeEG Australia.
British-founded American retail group

EG Group Limited
Formerly
  • Euro Garages (2001–2016)
  • Intervias Group (2016–2018)
Company typePrivate
IndustryRetail
Founded2001; 25 years ago (2001)
Founder
Headquarters
Blackburn
Area served
  • Australia (pending sale)
  • Belgium
  • France
  • Germany
  • Luxembourg
  • Netherlands
  • United Kingdom
  • United States
  • Ireland (formerly)
  • Italy (formerly)
Key people
  • Russell Colaco (CEO)
  • Lord Stuart Rose (chairman)
  • Mohsin Issa (co-owner and non-executive director)
  • Zuber Issa (co-owner and non-executive director)
Brands
ParentEG Group Holdings Limited
Websiteeg.group

EG Group Limited is a British operator offilling stations,convenience stores andfast-food service providers across Europe, the United States and Australia. It was founded as a single site inBury in 2001 by brothersMohsin and Zuber Issa, initially asEuro Garages.[1]

The group expanded across the United Kingdom by acquiring forecourts from oil majors who were divesting from retail to focus on their core-refining business.[1] In October 2015, private equity firmTDR Capital purchased a minority stake in Euro Garages for £1.3 billion.[2] In October 2016, TDR's European Forecourt Retail Group (EFR) merged with Euro Garages to formIntervias Group, which would later be renamed to EG Group.[3]

The group's acquisitions have been largely funded by debt, with a net debt of nearly £8 billion in March 2023.[4] Since early 2023, the group has sold the land of its U.S. forecourts in a sale-and-leaseback deal, as well as divested most of its UK assets toAsda Express, Zuber Issa (asEG On the Move) andYum! Brands in an effort to reduce this debt.[5][6] In August 2025, the group confirmed sales of its Italian and Australian divisions, and has also speculated that it is likely to either divest of its United States business, or reincorporate and float EG Group on the U.S. stock market as Cumberland Farms Group.[7][8]

There are plans for the business to relocate its global headquarters from Blackburn toCharlotte, North Carolina.[9] In the interim, the business remains headquartered at Euro House inBlackburn.[10]

History

[edit]

Growth and national expansion (2001–2015)

[edit]

In March 2001, brothersMohsin and Zuber Issa purchased aBP forecourt inBury, Greater Manchester for £150,000.[11] Later in the same year, the brothers would acquire additional forecourts.[12]

In October 2006, the group began rolling outSubway concessions at its forecourts.[13]

By July 2007, the group had formed partnerships withShell andTexaco, as well asSpar andCostcutter for grocery and merchandising.[14]

By February 2009, Euro Garages had 73 forecourts across North England and the Midlands.[15]

In July 2009, Euro Garages acquired its first motorway service area,Rivington services, and invested £12.5 million in refurbishing it.[16] In the same month, the group partnered with JJ Beano's to deploy Coffee Nation dispensers to its sites.[17]

In January 2010, the group began franchisingStarbucks locations, and in November of that year began a franchise agreement withBurger King.[18]

In February 2013, Euro Garages acquired 45 Esso petrol stations in North England and Wales fromExxonMobil, who were offloading their forecourt sites to focus on their core production and refining business.[19][20] In the same month, the group acquired a number of vacantLittle Chef premises, to transform into Starbucks franchises.[21]

In July 2013, the group entered into a trial agreement withGreggs, who wanted to enter the food-to-go sector.[22]

In January 2014, Euro Garages acquired another 48 Esso forecourts in the Midlands, nearly doubling Euro Garages' reach to 180 sites across the UK.[23] In April 2015, the group acquired another 104 Esso forecourts.[24] In October 2015, the group purchased 68 forecourts from Shell.[25]

TDR Capital and international expansion (2015–2023)

[edit]

In October 2015, TDR Capital purchased a minority stake in Euro Garages.[26]

In February 2016, Euro Garages formed a franchise partnership withKFC.[27]

In October 2016, Euro Garages merged with TDR Capital's European Forecourt Retail group (EFR), to create Intervias Group, a new group comprising 1,450 locations, with a presence in the UK, France, the Netherlands, Belgium and Luxembourg.[28]

In January 2017, Intervias Group began a trial to roll-outSainsbury's Local to forecourts in the UK, though these were unsuccessful and were changed to Spar.[29] The group would later collaborate with Sainsbury's again to create Sainsbury's on the Go, though this concept was discontinued later on as well.[30]

In February 2017, Intervias Group purchased 78 UK properties fromKout Food Group, this including all 70Little Chef sites (some with attached Burger King and Subway franchises) and eight standalone Burger King sites for £16 million.[31][32] The group would then transform the Little Chef sites into franchise partners by October 2018.[33] The group founded EG Diner as a stopgap in January 2018, when its licence to use the Little Chef name expired, ending the Little Chef brand after almost 60 years.[34]

In August 2017, EG Group opened its first hotel site, a formerTravelodge hotel site inMonmouth, Wales, reopening it as Raglan Lodge. Another former Travelodge hotel site location at Rivington Services was acquired and reopened as Rivington Lodge.[35]

In November 2017, the business secured approximately 1,000 petrol stations fromEsso in Germany, which would be transferred and integrated into the existing network by October 2018.[36]

In December 2017, Intervias Group announced a partnership withKrispy Kreme in the UK.[37]

In January 2018, Intervias Group announced that it had completed the acquisition of circa 1,200 sites in Italy from Esso.[38] In April 2018, Intervias Group completed the acquisition of a portfolio of 97 sites in the Netherlands to supplement is existing network in the country.[39]

On 5 February 2018, Intervias Group announced that it would purchase nearly eight hundredKroger convenience stores for $2.15 billion.[40] In December 2018, EG Group completed its acquisition of 225 sites of Minit Mart from Travel Centers of America LLC for upwards of US$330m.[41]

On 9 November 2018, Australian retailerWoolworths announced to theAustralian Securities Exchange it had entered into a binding agreement to sell its 540 fuel convenience sites to EG Group forA$1.72bn. This createdEG Australia.[42]

In July 2019, EG Group completed its acquisition of fifty four Fastrac branded sites in the United States,[43] and announced a deal to acquire sixty nine sites operated by Certified Oil, also in the United States.[44] On 31 July 2019, EG Group announced having entered a binding agreement to purchaseCumberland Farms.[45][46][47] EG America has become the nation's fourth largestconvenience store chain following7-Eleven's purchase ofSpeedway, and withCircle K andCasey's occupying the other spots ahead of EG America.[48][49] Some EG America locations have begun offering franchised food concepts at their locations, such asSubway,Burger King,Sbarro, andHunt Brothers Pizza, to compete better with chains that have long-established in-house food products.[50]

Former Loaf 'N Jug now a Kroger's Smith's Express inGillette, Wyoming[51]

In early 2020, EG Group announced that they were opening 150 UK bakery outlets under a partnership withCinnabon by 2025.[52][53]

In March 2020, EG Group acquired 145 KFC outlets in the UK and Ireland from The Herbert Group.[54]

In October 2020, the Issa brothers and TDR Capital won a deal to buy the supermarket chainAsda fromWalmart for £6.8 billion, bringing it back into British hands after more than 20 years.[55] Questions were raised after its auditor,Deloitte, "suddenly quit" to be replaced byKPMG.[56] However, the group indicated there were no auditing disagreements.[56] This acquisition would mean EG Group would work with Asda to create 'Asda on the Move' and 'Asda Express', transforming a number of its existing Spar sites.[57]

In November 2020, EG Group entered into a binding agreement for the acquisition of 18 locations of Schrader Oil inFort Collins, Colorado.[58]

In May 2021, EG Group boughtLeon Restaurants in the UK for a reported £100 million.[56]

In September 2021, EG Group acquired 52 British KFC restaurants from Amsric Group, becoming the largest KFC franchisee in western Europe.[59]

In October 2021, EG Group boughtCooplands, the UK's second-largest bakery operating mainly inNorth East England andYorkshire.[60] Also in October 2021, the group announced it would sell 27 sites toPark Garage Group to satisfy theCompetition and Markets Authority after buyingAsda.[61]

In April 2022,The Wall Street Journal reported that Circle K parentAlimentation Couche-Tard was in talks to buy EG Group. This deal would significantly boost Circle K's presence in several markets including Europe, as well as giving it a location in every US state exceptUtah.[62]

In May 2022, EG Group attempted to rescue the British convenience store chainMcColl's from administration, but lost out toMorrisons.[63][64]

Later in the same month, the group bought 285 petrol stations inSouthern Germany fromOMV, which were partly supplied by refinery Burghausen. The price was 485 millionEuro cash which equals 614 million Euro including pending lease obligations.[65]

Restructure plan (2023–present)

[edit]
ATurkey Hill Minit Markets location inColumbus, Ohio offeringCumberland Farms branded coffee in 2021

In March 2023, EG sold and leased back 415 of its American convenience stores toRealty Income for $1.5 billion (£1.18 billion) to help to drive down its debts.[66]

In May 2023, it was announced that EG Group would spin off the majority of the UK business toAsda: it would include the majority of the petrol stations, which would be rebranded under the Asda Express sub-brand,Greggs,Subway andBurger King franchises and theLeon Restaurants chain.[67] The deal was finalised on 31 October 2023.[68][69]

On 6 December 2023, EG Group announced that they would sell their 218 KFC UK and Ireland restaurants to KFC ownerYum! Brands for an undisclosed sum, meaning EG Group will leave the Irish market.[70] The sale was completed in April 2024.[71]

In March 2024, it emerged that Zuber Issa would acquire most of EG Group's remaining UK assets, and then operate them asEG On the Move (a separate company to EG Group).[72] These assets were confirmed to include the rest of the UK petrol forecourts and the UKCinnabon franchise, with EG Group left with its only UK assets beingCooplands, some Starbucks franchises, and Evpoint.[73][74]

In December 2024, it was reported that Mohsin and Zuber were looking to float EG Group publicly at a valuation of £13 billion in the United States.[75]

On August 10, 2025, Zuber told reporters that the option for EG Group to sell off its U.S. business should be explored, in addition to the option of floating the entire company publicly. Zuber also expressed dissatisfaction in the private-equity model, and mentioned that he and Mohsin have learned a lot since they formed the business.[76]

On August 12, 2025, EG Group announced it would sell off its Italian division to a consortium to help repay its debts.[77] The company also announced it would sell off itsAustralian business toAmpol in August 2025, with the sale expected to be finalised in mid-2026.[78][79]

On August 22, 2025, EG Group announced that they would be moving its headquarters from Blackburn toCharlotte, North Carolina.[80]

In October 2025, it was announced that EG Group had divested ofCooplands, making their only UK assets Starbucks franchises and EVPoint.[81] Also in October, EG Group in the UK were fined for underpaying 3,317 workers by £824,000 between 2015 and 2019. The group reported that the issue had been fully rectified and all staff had since been paid.[82]

See also

[edit]

References

[edit]
  1. ^abPilkington, Lisa (16 January 2014)."Euro Garages buys Esso portfolio".Estates Gazette. Retrieved16 August 2025.
  2. ^Begum, Shelina (20 October 2015)."TDR Capital takes a bite into Euro Garages for £1.3bn".Manchester Evening News. Retrieved23 January 2024.
  3. ^"Euro Garages and EFR deal details emerge | TheBusinessDesk.com".North West. 6 October 2016. Retrieved23 January 2024.
  4. ^Morgan, Aoife (9 June 2023)."EG Group extends $3.4bn loan deadline following Asda deal – Retail Gazette". Retrieved27 May 2024.
  5. ^Faithfull, Mark."EG America Owner Sells U.S. Gas Stations And Considers Asda Merger".Forbes. Retrieved30 August 2024.
  6. ^"Issa brothers fry off entire KFC franchise to slash debt mountain".CityAM. 6 December 2023. Retrieved30 August 2024.
  7. ^Staff, The CStore Decisions (14 August 2025)."EG Group Agrees to Sell Australian Business for $1.1 Billion".CStore Decisions. Retrieved16 August 2025.
  8. ^Rachel Gignac (11 August 2025)."EG Group co-founder Zuber Issa calls for sale of U.S. convenience-store business to cut debt".CSP Daily News. Retrieved16 August 2025.
  9. ^"Multi-billion-pound EG Group coming to Bolton as firm to quit Blackburn".The Bolton News. 23 August 2025. Retrieved23 August 2025.
  10. ^"EG Group Headquarters".Jordon Group. Retrieved16 August 2025.
  11. ^McCall, Alastair; Watts, Robert (7 May 2017). "High-octane rise of brothers' firm shows family value".The Sunday Times. p. 3.
  12. ^"Our Enterprise Journey".www.eg.group. Retrieved23 March 2024.
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  14. ^House, Companies (31 July 2007)."Euro Garages Limited – directors report and financial statements".Companies House. Retrieved24 August 2024.
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  34. ^Farrell, T. (11 December 2013)."The rise and fall of the Little Chef empire (1958–2018)".Let's Look Again.Archived from the original on 28 October 2021. Retrieved29 June 2022.
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  52. ^"EG Group to Open 150 Cinnabon® Bakeries Across the UK Under New Master Licensee Deal".Euro Garages. 30 November 2020.Archived from the original on 27 January 2021. Retrieved22 December 2020.
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  63. ^Gill, Oliver; Warrington, James (9 May 2022)."Morrisons beats Issa brothers in battle to rescue McColl's".The Telegraph.ISSN 0307-1235. Retrieved10 September 2022.
  64. ^Nazir, Sahar (9 May 2022)."Morrisons buys McColl's, beating Asda owner EG Group". Retrieved30 September 2024.
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  67. ^"UK's Asda to buy EG petrol stations unit in $2.9-bln deal".Reuters. 30 May 2023.
  68. ^"Issa Brothers and TDR Capital Complete the Acquisition of Asda from Walmart".corporate.walmart.com.Archived from the original on 16 February 2021. Retrieved6 April 2021.
  69. ^Hunt, Simon (31 October 2023)."Issa brothers complete EG Group UK sale to Asda at a discount".Evening Standard. Retrieved31 October 2023.
  70. ^Wright, Georgia (6 December 2023)."EG Group to sell all 218 KFC UK&I franchise restaurants to reduce debt – Retail Gazette".www.retailgazette.co.uk. Retrieved6 December 2023.
  71. ^Wright, Georgia (6 September 2024)."EG Group delivers strong Q2 amid 'standout' USA and Europe performance – Retail Gazette". Retrieved6 September 2024.
  72. ^"EG Group to retain Cooplands Bakery brand, KFC and Starbucks franchises following cut-price Asda sale – Prolific North". 31 October 2023. Retrieved5 November 2023.
  73. ^Louch, Will; Onita, Laura (6 March 2024)."EG Group in talks to sell some UK assets to co-founder Zuber Issa".www.ft.com. Retrieved7 April 2024.
  74. ^Wright, Georgia (20 May 2024)."Zuber Issa to acquire EG's UK arm as group returns to profit – Retail Gazette". Retrieved20 May 2024.
  75. ^Morgan, Aoife (30 December 2024)."Issa Brothers eye £13bn float for EG Group – Retail Gazette". Retrieved30 December 2024.
  76. ^"Client Challenge".www.ft.com. Retrieved12 August 2025.
  77. ^Jacobs, Bill (12 August 2025)."Issa brothers' EG Group agree sale of Italian business as they repay debts".Lancs Live. Retrieved12 August 2025.
  78. ^"EG Group agrees sale of its Australian business". EG Group. 14 August 2025. Retrieved15 August 2025.
  79. ^"Ampol Executes Agreement to Acquire EG Australia"(PDF). Ampol. 14 August 2025. Retrieved15 August 2025.
  80. ^Hannah Hammond (22 August 2025)."EG Group continues its push into the United States".CSP Daily News. Retrieved22 August 2025.
  81. ^Riley, Dan."Cooplands back in Yorkshire hands after EG Group agrees sale to local investors".British Baker. Retrieved4 October 2025.
  82. ^Griffiths, Hugo."EG Group fined for underpaying 3,317 workers £824k".Forecourt Trader. Retrieved21 October 2025.
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