Issa brothers’ EG Group has bought a 285-strong network of petrol station forecourts in Southern Germany for around £442 million.
With this acquisition, the group has further expanded its portfolio in Europe.
The Blackburn-based group said it has reached a binding agreement to purchase the sites from OMV Deutschland GmbH for £441.6m.
EG Group already operates sites under the ESSO fuel brand in Germany. The deal will see the group inheriting existing fuel supply agreements from OMV.
“The acquisition is an exciting opportunity for us to expand EG Group’s footprint in Germany, a key European market where we see significant growth potential,” said Zuber Issa, co-founder and co-CEO of EG Group.
“We look forward to integrating the business into our broader portfolio and further strengthening it through our expertise in grocery & merchandise and foodservice.”
Mohsin Issa, co-founder and co-CEO of EG Group, added: “The supply agreements we will inherit are extremely competitive and alongside the continuation of OMV fuel card acceptance, provide a solid foundation on which we can continue to build.”
EG Group said the deal will be funded using existing cash reserves and facilities, and will be leverage neutral for the group. EG has also agreed to assume outstanding lease liabilities, implying a total enterprise value of €614 million.
The transaction is expected to close in 2021, subject to regulatory approvals.
EG Group, which recently secured an agreement to buy Asda from Walmart, operates over 6,000 sites across three continents.
Rachel Reeves