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Asda has completed its acquisition of EG Group’s UK business in a deal valued at £2bn.
The move has seen the supermarket acquire EG Group’s UK&I fuel, foodservice, grocery and merchandise business.
EG Group said it will continue to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium, as well as 32 sites in the UK.
Under the deal, it 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.
EG Group said the move forms part of its plan to rollout foodservice, grocery and merchandise to create multi-purpose convenience retail sites across its international estate.
Alongside news of the deal, EG Group also announced the launch of up to a $500m (£412m) term loan, with further refinancing to follow.
Zuber Issa CBE, co-CEO and co-founder of EG Group, said: “The sale of the majority of EG Group’s UK business to Asda represents an important strategic step for the company, enabling 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. Following this transaction and the successful extension of the debt maturities to February 2028, EG Group will benefit from a sustainable capital structure from which to build for the future.”
Lord Stuart Rose, chairman of EG Group, added: “The transaction is an important milestone for both companies. EG Group can focus on international growth underpinned by its strengthened balance sheet, whilst Asda can accelerate its convenience rollout on proven, well-invested sites.
“There is now a clear opportunity to grow and build the international business whilst ensuring EG plays a pivotal role in the energy transition.”
