Blackburn-based petrol station billionaires the Issa brothers have announced that their company, EG Group, is expanding further in the United States.
The Issa brothers and funds managed by London-based private equity firm TDR Capital LLP announced on October 2 they agreed to buy Leeds-based Asda from Walmart Inc. for an enterprise value of £6.8 billion.
Now, EG Group has entered into a binding agreement for the acquisition of Schrader Oil in the US.
Schrader currently operates 18 convenience retail stores and fuel stations in Northern Colorado and employs 150 people.
EG Group already operates a network of 88 Loaf ‘N Jug convenience stores in Colorado, employing nearly 1,500.
Throughout the US, EG Group owns and operates Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf ‘N Jug, Minit Mart, Quik Stop, Tom Thumb, and Turkey Hill.
The purchase of Schrader Oil 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 on an annualized basis.
Mohsin Issa said: “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.”
Schrader Oil Company president Steve Schrader said: “We are thrilled to be passing the baton to a highly successful and growth oriented company in EG.
“We believe they have the capability to take our success and continue to support our community for many years to come.
“We believe we have found the best fit for our family, our employees, and our community.”
EG Group said the terms of the transaction were not disclosed, but the deal is being funded using existing cash reserves and is not material to EG Group’s balance sheet.
The transaction is expected to close by the end of 2020, subject to customary regulatory approvals.
All site and field-based employees of Schrager will transfer to EG Group.
EG Group currently employs over 55,000 people working in 6,000 sites across Europe, the US and Australia.