The Issa brothers have sold 63 US convenience stores to reduce EG Group’s debt.
- These stores, located in Kentucky and Tennessee, have been acquired by Casey’s General Stores.
- The sale is part of a broader strategy to manage EG Group’s financial liabilities.
- EG Group previously sold its UK and Ireland operations to Asda for £2.27 billion.
- The divestment strategy includes a sale and leaseback agreement for $1.5 billion.
The Issa brothers have executed a sale of 63 US convenience stores under the Minit Mart and Certified Oil brands to Casey’s General Stores. This transaction is driven by the need to mitigate the burgeoning debt accumulated by EG Group. The strategic move illustrates a continued effort by the Issa brothers to optimise their financial structure, having previously completed significant transactions including the sale of their UK and Ireland operations to Asda.
Casey’s General Stores, the new owner, is expected to retain the workforce currently employed at these locations. This outcome ensures continuity for the employees and maintains the operational flow of the sold assets. The acquisition by a well-regarded operator like Casey’s is anticipated to provide stability and growth prospects for the stores involved.
Earlier in the year, EG Group engaged in a significant transaction involving their UK and Ireland assets. The £2.27 billion deal with Asda encompassed 350 petrol filling stations and over 1,000 food-to-go locations, marking a noteworthy reorganisation of their asset base. This shift not only aimed at debt reduction but also aligned with their broader strategic objectives.
Additionally, EG Group secured a sale and leaseback agreement with Realty Income, a transaction valued at $1.5 billion for 415 sites, requiring an annual rent payment of $103 million. This financial manoeuvre is part of a deliberate plan to restructure EG Group’s financial commitments and enhance liquidity.
Zuber Issa commented on the sale, emphasising the strategic alignment and mutual benefits for both parties. He stated that the divestment is a crucial step in their deleveraging strategy. Similarly, Nick Unkovic, President of EG America, expressed confidence in Casey’s ability to cultivate the solid foundation established by the team members at the stores.
This series of strategic divestments highlights the Issa brothers’ comprehensive approach to addressing EG Group’s financial challenges.
