Blackburn-based petrol forecourt and retail giant EG Group — owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital — announced it has entered into a definitive agreement to sell all its 218 KFC franchise restaurants in the UK and Ireland to Yum! Brands’ KFC Division.

“The transaction agreed by EG Group – the largest KFC franchisee in the UK and Ireland – is an additional step in the company’s successful deleveraging strategy and continued progress towards putting in place a sustainable capital structure,” said the Blackburn firm.

“The sale is expected to complete in the first half of 2024, with proceeds to be used to repay debt.

“EG Group continues to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg, Belgium and the UK, including its wholly-owned bakery business, Cooplands, as well as franchise businesses with the Starbucks, Subway, Greggs, Sbarro, Chaiiwala and Cinnabon brands.”

Zuber Issa and Mohsin Issa, co-founders and co-CEOs of EG Group, said: “We are proud to have been a strategic partner of KFC in the UK and Ireland, playing an important role in helping the brand expand its footprint.

“Now is the right time to hand the baton to the KFC leadership team to continue to grow the brand in the UK and Ireland.

“This is the latest transaction in our significant deleveraging this year to put in place a sustainable capital structure for the group.

“We would like to thank all the colleagues who have helped deliver such exceptional brand standards and customer service over recent years, including during the Covid-19 period.

“We continue to make good progress against our key strategic priorities – delivering a world-class grocery and merchandise, foodservice and fuel proposition across nine markets globally.”