Blackburn-based fuel station and convenience store giant EG Group announced yet another expansion in the United States with a binding agreement for the acquisition of Cumberland Farms.

Cumberland Farms operates 600 convenience retail stores and fuel stations across seven north-east states and Florida and employs 9,000 people.

The EG Group already employs 30,000 people in Europe, the US and Australia.

Zuber Issa, founder and co-CEO, EG Group said: “Over nearly eight decades the Haseotes family have built Cumberland Farms into an outstanding portfolio of large, modern facilities run by a team of associates who are connected to the communities they serve. 

“It is rare that an asset of this quality becomes available and we are delighted to have been successful in a highly competitive process.”

The purchase of Cumberland Farms will take the EG Group’s network to nearly 1,700 stores across the US, operating in 30 states and retailing over 2.5 billion gallons of fuel with merchandise sales of more than $3 billion on an annualized basis.

Mohsin Issa, founder and co-CEO, EG Group added: “The acquisition of Cumberland Farms is a transformative one for our US business. 

“It brings us greater scale and a well-established network in locations we do not currently serve that is highly complementary to our existing US store footprint. 

“We believe that the Cumberland Farms portfolio comprises some of the very best convenience stores within the USA and we are delighted they will form part of the EG family.”

Morgan Stanley, Goldman Sachs, Barclays, PwC and Rothschild & Co are acting as financial advisors to EG.

Allen & Overy LLP and Kirkland & Ellis LLP are acting as legal advisors to EG.

RPS Gaiatech are advising EG on environmental risk management.

EG has committed financing in place to support the transaction from a bank group led by Barclays.

The transaction is subject to regulatory approval and customary closing conditions.