Asda finalises £2.27bn EG Group acquisition
Asda has announced the acquisition of EG Group’s UK and Ireland business for around £2.27bn.
The deal sees the supermarket group acquire an estate of around 350 petrol stations and over 1,000 food-to-go locations.
EG Group will maintain control of around 30 petrol forecourt sites which will not form part of the transaction.
Asda, which is owned by the billionaire Issa brothers and TDR Capital, said the acquisition will create combined revenues of nearly £30bn, serving around 21 million customers weekly.
The supermarket retailer added that it intends to to invest over £150m within the next three years into integrating the combined businesses, with shareholders contributing an additional £450m to fund the transaction. A further £770m of term loan debt and around £1.1bn from property transactions are also contributing to the acquisition.
166 EG Group sites have already been converted to the ‘Asda on the Move’ concept, with the remaining EG estate in the UK and Ireland expected to be brought under the Asda fascia.
The supermarket retailer’s co-owner, Mohsin Issa, will continue to lead the business until a suitable CEO is found.
Gary Lindsay, managing partner at TDR Capital, said: “The combination of Asda and EG UK&I creates a convenience and food retailing champion, with nearly £30 billion in annual revenues. The two businesses are highly complementary, bringing together Asda’s traditional focus on mid-to-large sized supermarkets and EG UK&I’s on convenience retail, foodservice and fuel.”
The transaction is expected to finalise in the final quarter of the 2023 financial year.