EG Group: Sells Majority Of Its UK+I Business To Asda

Blackburn / UK. (biegg) British EG Group has announced an agreement to sell to Asda Group the majority of its UK and Ireland fuel, foodservice, grocery and merchandise business for an enterprise value of 2.27 billion GBP (2.8 billion USD).

This transaction is a transformational step for the Group and strengthens its platform to further invest in its proven and successful strategy to rollout foodservice, grocery and merchandise to create multi-purpose convenience retail sites across its estate. The Group will also accelerate 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 proceeds, together with the net proceeds of USD 1.4 billion from the recent sale and lease back transaction in the US, will be used to repay debt and the Group’s net leverage will fall to below 5 times, in line with the recently announced financial policy and deleveraging strategy. In due course, the Group will look to address upcoming maturities and put in place a capital structure for the medium term, as communicated on the Q4-2022 results call. The Group remains committed to achieving a net leverage multiple of mid 4 times in the near term.

EG Group will continue to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium, whilst also retaining approximately 30 UK sites – including the first Euro Garages site in Bury – which are close to the Group headquarters and frequently used to trial innovation. The Cooplands bakery business and certain other foodservice brands will also be retained.

The Group will remain a leading global convenience retailer, generating over USD 25 billion of annual revenue and more than USD 1 billion of Ebitda, across 5,500 locations, underpinned by approximately USD 6 billion of freehold property. The Waterside offices in Blackburn, UK, will remain as the global headquarters and shared service centre for the Group. The transaction is expected to complete in Q4-2023.

Zuber Issa CBE, co-founder and co-CEO of EG Group: «This transaction with Asda represents an important strategic step for EG Group. Following this sale, EG Group will benefit from a significantly strengthened balance sheet, supporting 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 our EV charging business, evpoint, as well as hydrogen and other sustainable fuel retail infrastructure, which we continue to see as a significant future opportunity.

«I am confident the UK+I business will go from strength to strength under Asda’s ownership. Over the last 22 years we have built a business that I am extremely proud of, and EG Group will continue to maintain an important base in the UK, supporting the global business from our home in Blackburn.

«I want to thank all of our colleagues, across the business, for their hard work and dedication over the years, and we now look forward to continuing to develop and execute our successful strategy.»

Stuart Rose, Chairman of EG Group: «Zuber and Mohsin Issa have spent the last two decades creating the best convenience retailing business in the UK. Their journey from one site to creating a global business has been extraordinary and reflects their vision, and ability to be a genuine disruptor in the forecourts market, turning these locations into destinations in their own right with food, coffee and convenience. Following this deal, they will remain in nine countries, with an even stronger business, which is able to focus on international growth.»

Gary Lindsay, Managing Partner at TDR Capital: «The sale of the EG UK+I business to Asda makes strategic sense for both parties and will enable EG Group to accelerate its growth in key markets including Europe, the US and Australia.

«The Group has developed a successful blueprint in the UK for developing one-stop shop sites which combine convenience retail, fuel and foodservice and there are significant value creation opportunities from rolling out this model, across the global estate.

«The Group remains at the leading edge of developing the forecourts of the future, and its ongoing development of alternative fuels and EV charging infrastructure.»

About Asda

Headquartered in Leeds, ASDA is the UK’s third-largest supermarket by market share. Employing more than 145,000 colleagues, it serves over 15m customers every week in over 640 stores located around the UK and online via

With roots dating back to a family business in the 1920’s in West Yorkshire, Asda was founded in 1965 through the merger of the Asquith family grocery business with the Associated Dairies company – its name is derived from this merger.

Asda’s primary operations include the sales of groceries, clothing, general merchandise and fuel. The launch of Asda Express in 2022 formed part of Asda’s long-term strategy to become the UK’s second largest supermarket by establishing a presence in the fast-growing convenience sector.

Introduced in 1989 and based in Leicestershire, the launch of George made Asda the first UK supermarket to open a clothing range in its stores. George is now the UK’s second-largest clothing retailer by volume.

Asda has a long heritage in providing customers and was crowned the UK’s lowest-priced supermarket by the Grocer magazine for the 25th consecutive year.

Since 2021, Asda has been jointly owned and controlled by the Issa Brothers (Mohsin and Zuber Issa) and TDR Capital.

About TDR

TDR Capital is a European private equity firm with over EUR 15 billion of assets under management. Founded in 2002, TDR typically acquires majority stakes in strong, market-leading European companies with the potential for robust growth and resilience throughout economic cycles.

TDR has managed five European mid-market buyout funds and has a team of approximately 80 professionals is currently managing assets across four European mid-market buyout funds, from the main office in London.

TDR takes a long-term approach, typically holding investments well beyond the industry average. TDR not only invests capital in portfolio companies, but also provides expert team resources to help bring about sustainable, positive and transformational change within our businesses. To date, TDR has made 24 platform investments, and employ over 280,000 people around the world across portfolio companies.