Asda completes $2.5bn purchase of EG's UK business
Published on: Oct 31, 2023
Deal allows the group to focus on international growth and the energy transition to alternative fuels and EV charging.
EG Group confirms that it has completed the sale of the majority of its UK&I fuel, foodservice, grocery and merchandise business to Asda for £2 billion ($2.5bn).
EG Group will continue to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium as well as 32 sites in the UK. The company will also retain certain foodservice brands including Cooplands, its wholly-owned bakery business, as well as franchise businesses with the Starbucks, KFC, Sbarro, Chaiiwala and Cinnabon brands.
Deal will help the company invest in its strategy to rollout foodservice, grocery and merchandise to create multi-purpose convenience retail sites across its international estate. EG Group will also continue its strategy to deploy emerging fuels and EV chargers, under its proprietary brand, evpoint, across the existing site network, as well as third-party locations.
“The sale of the majority enables EG to support the continued roll out of its successful convenience retail, fuel and foodservice strategy and drive innovation to transform the consumer experience. This includes the ongoing investment and expansion of the EV charging business, evpoint, as well as hydrogen and other sustainable fuel retail infrastructure, which we continue to see as a significant future opportunity,” said Zuber Issa CBE, co-CEO and co-founder of EG Group
The $2.5 billion proceeds from this transaction will be used – together with the net proceeds of $1.4 billion from the recent sale & lease back transaction in the US and the $43 million net proceeds from the non-core US asset disposal – to repay debt, enabling the company to significantly reduce net leverage, in line with the previously announced financial policy and deleveraging strategy.
EG Group will remain a leading global convenience retailer, generating over $25 billion of annual revenue and more than $1 billion of EBITDA, across 5,500 locations.
