EG Group has agreed to sell 63 convenience stores to US convenience operator Casey’s to reduce its debt pile.
The 63 stores are located in Kentucky and Tennessee, and currently operate under the Minit Mart and Certified Oil banners.
EG America and Casey’s, two of the leading convenience store chains in the US, anticipate the deal will close later this year, subject to customary regulatory approvals.
Casey’s is expected to retain the impacted employees at each store, and EG America is co-operating to make their transition as seamless as possible.
Zuber Issa, co-founder and co-CEO of EG Group, said: “EG Group is pleased to have found a new home for some of our Certified Oil and Minit Mart portfolio. This divestment will enable both parties to execute their strategic plans, respectively. For EG Group, this divestment also represents another important step in executing our deleveraging strategy.”
Nick Unkovic, president of EG America, said: “We have built a strong and successful business over the years in these Certified Oil and Minit Mart stores, and we are proud of the hard work and dedication shown by our team members there. Casey’s is an excellent operator, and we are confident these stores and team members will continue to thrive under their ownership.”
UK-based EG Group, founded by the Issa Brothers in 2001, has built a debt of around $9.7bn (£7.6bn) at the end of 2022 as it built a global empire spanning more than 50,000 staff working in over 6,600 sites across the UK&I, Europe, US and Australia.
Darren Rebelez, president and CEO of Casey’s, added: “One of the key pillars in our strategic plan is to accelerate our store growth over the next three years and bring Casey’s to more communities.
“This opportunity is an excellent strategic fit as we look to add locations in Kentucky and Tennessee, which are both within our existing distribution footprint. We look forward to serving more guests in these markets and welcoming the team members from this transaction into the Casey’s family.”
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