Forecourt giant EG group, previously Euro Garages, is to expand into Australia after agreeing to buy the Woolworths Petrol chain in an A$1.7bn deal.
EG Group will take control over Woolworth Group’s 540 site network, which employs around 4,000 people.
In the year to 30 June 2018, the acquired business generated A$4.8 billion of revenue and sold 3.6 billion litres of fuel.
As part of the transaction, EG Group and Woolworths have entered into a 15 year commercial alliance covering loyalty, fuel discount redemption, and wholesale supply.
The deal is the latest in an international acquisition drive which saw the Lancashire-based group acquire 225 Minit-Mart branded convenience retail stores and petrol stations.
“For the past 17 years, we have had a vision of becoming a leading petrol station and convenience store operator around the world,” commented EG Group founder and co-CEO Mohsin Issa. “This is another exciting international milestone on our growth journey.
“We are the leading independent petrol forecourt retailer in Europe and are having great success in the US. The Woolworths’ assets present a fantastic opportunity to further grow our international footprint and deliver our best-in-class retail experience in a new geography.
“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team.”
EG group operates around 4,700 sites across Europe and North America, employing over 28,500 colleagues across leading retail brands such as ESSO, BP, Shell and Carrefour.
Brad Banducci, Woolworths Group CEO said, “This transaction is a positive for our customers, our team and our shareholders.
“The agreement will continue to strengthen the opportunities our customers have for greater value when shopping with us, with the benefits of the Woolworths’ Rewards program and the fuel discount offer set to continue.
“A long-term wholesale food supply arrangement will also ensure that EG Group can benefit from competitive product sourcing, including Woolworths’ own brands, to provide a world class convenience offer that will add further scale to Woolworths.”
The transaction is subject to Australian Foreign Investment Board (FIRB) approval and completion is expected in early 2019.