Blackburn-based petrol station and convenience store giant EG Group has announced the completion of its Cumberland Farms acquisition in the United States.
Based in Westborough, Massachusetts, Cumberland Farms operates 567 convenience stores in seven northeast states and Florida.
EG Group now operates nearly 5,400 stores in 9 countries.
Bloomberg reported recently that EG Group is planning an initial public offering next year that could value the company at about $12.44 billion, citing people familiar with the matter.
Privately-held EG Group was founded with a single filling station in Bury as Euro Garages in 2001 by brothers Zuber and Mohsin Issa.
“Today’s integration of the Cumberland Farms assets will take EG Group’s USA network to 1,680 gas station and convenience stores across 31 states and retailing more than 2.5 billion gallons of fuel with merchandise sales of more than $3 billion on an annualized basis,” said EG Group.
Zuber Issa, founder and co-CEO of EG Group, said: “The Cumberland Farms acquisition represents another significant step in our ambition to build the most compelling, comprehensive and effective convenience customer retail network across the USA.
“Cumberland Farms is a well-invested, modern retail network.
“The Haseotes family have also invested in creating a leading edge warehouse and commissary, established supply and logistics, developed an effective e-commerce and digital platform and created own brand merchandising.
“All these investments in my opinion, further extend our Omni channel retail capabilities and provide further strategic options for us to consider when developing a robust convenience offer.”
Cumberland Farms CEO Ari Haseotes said: “Being a third generation founding owner and operator, I have an immense amount of gratitude for the Cumberland Farms team and what we have achieved together.
“This is the right next step for Cumberland Farms and creates an incredible opportunity to expand and grow the existing business into the wider EG Group global network.”
Morgan Stanley, Goldman Sachs, Barclays, PwC and Rothschild & Co are acting as financial advisors to EG. Allen & Overy LLP and Latham & Watkins LLP are acting as legal advisors to EG. RPS Gaiatech are advising the company on environmental risk management.
BofA Merrill Lynch acted as financial advisor and WilmerHale LLP acted as legal advisor to Cumberland Farms on the transaction.