EG Group Goes West With Fuel Retail Convenience Model

BLACKBURN, UK; April 20, 2018 – EG Group is pleased to announce the successful completion of its acquisition of 762 convenience stores in the USA from Kroger Co. including 66 franchise operations, operating in 18 states and employing 11,000 associates under the following banner names: Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop.

EG Group will establish their North American headquarters in Cincinnati, Ohio and continue to operate stores under their established banner names.

USA is a new market for EG Group to further expand operations into and the acquisition facilitates an opportunity to secure further assets in North America.

EG Group will look to implement into the USA its successful retail brand partner commercial approach. This will entail assessing the acquired site network in terms of its retail potential, initially partnering with and investing in a few locations with recognised global and local retail brands to understand the market dynamics and consumer perceptions. Following a recognised trial period, these learnings will then provide the necessary market understanding and business model confidence to accelerate growth and roll-out of a best-in-class retail offer across the remaining network.

Mohsin Issa, Founder and co-CEO, EG Group expressed:

“This announcement represents another momentous chapter in the enterprise journey for EG Group. We now look forward to working with our exceptional US management team and begin to invest in the network in the coming months. Given the spatial spread across the USA, nurturing the right strategic brand partnerships for the respective market regions is going to be an important strategy focus in North America.

We already have established relationships with many leading US retail brands and consumers want to access convenient locations to fulfil multiple fuel, convenience store and food-to-go missions and stop at those locations that provide excellent welfare to motorists; for example, customers are looking to access a safe retail environment, well-lit sites with ample parking, free wi-fi, internal seating areas and clean washrooms.

We aim to invest and transform our locations into branded retail destinations and be recognised as an effective US fuel, convenience store and food-to-go retailer.

I would like to take the opportunity to thank my local team and colleagues from the EG Group, Kroger, suppliers and our professional advisers who have supported us throughout the whole transfer process.”

 

About EG Group

Founded in 2001 by brothers Zuber and Mohsin Issa, United Kingdom based EG Group is a leading petrol forecourt retail convenience operator who has established partnerships with global brands such as ESSO, BP, Shell, Carrefour, Louis Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs and Subway.  The business has an established pedigree of delivering a world class fuel, convenience and food-to-go offer.

EG Group employs over 26,000 staff working in over 4,600 sites across various European markets including the United Kingdom, France, The Netherlands, Belgium, Luxembourg and Italy and the USA. EG Group has made a significant commitment to delivering a modern consumer retail offer which exceeds expectations and creates a true ‘one-stop’ retail destination to satisfy multiple consumer missions. The business is regularly recognized for innovation and investment in convenience retail assets, the employees and the systems. Zuber Issa and Mohsin Issa, Founders and co-CEOs of Euro Garages, were jointly named the 2016 NACS Insight European Convenience Industry Leader of the Year.

EG Group Contacts:

Media: Martin Currie, Citypress

E: martin.currie@citypress.co.uk

EG wins Asian Business of the Year 2018

Euro Garages was awarded the Asian Business of the Year at the 2018 Asian Business Awards last night at an event in London.

ZuberZuber Issa, collecting the Asian Business of the Year Award, March 23 2018

The gala event, attended by Dinesh K Patnaik, Deputy High Commissioner, High Commission of India, honoured outstanding business achievements across industries. The awards are Britain’s biggest celebration of Asian business success and entrepreneurship.

For a full list of winners, visit the website.

EG Group Secures NRGValue Network in Netherlands

EG Group announce that they have entered into a definitive agreement with NRGValue Holding Nederland B.V. for the acquisition of all shares in NRGValue Retail B.V. which encompasses their 97 site Esso branded network in the Netherlands.

Through the addition of these Esso branded sites, EG Group will further expand its retail network in the Netherlands and reinforce its position as a market leader reaching 595 stations. These company owned sites have achieved consistently strong volumes per site and will further benefit from the deployment of a complementary high quality non-fuel branded retail offer.

Mohsin Issa, EG Group Founder and co-CEO expressed:
“This is a great opportunity for EG to reinforce its existing position as a leading independent forecourt operator in the Netherlands. I believe that our expertise in investing in an effective branded non-fuel retail offer provides room for significant growth across the NRGValue portfolio. We are focussed on delivering a world-class fuel, convenience store and food-to-go offer which exceeds consumer expectations.”

Ramon Mendes de Leon, NRGValue Founder and CEO:
“Over the last two years, my team and I have led the NRGValue business to become a successful independent operator in the Netherlands. Having interacted with the EG Group team over the last couple months, I believe that EG Group is the perfect partner to drive the business into its future stage of growth. I would like to thank the NRGValue team on this fantastic journey.”

The purchase is subject to the approval from the Dutch competition authority (ACM).

The acquisition will be financed via incremental first lien debt which has been underwritten by Bank of America Merrill Lynch, Barclays, Deutsche Bank, Morgan Stanley and UBS.

Bank of America Merrill Lynch is acting as exclusive financial advisor to EG Group. Allen & Overy is acting as legal advisor to EG Group.

 

EG Group Looks To Deliver Future of Fuel Retail Convenience

ROME, Italy; February 15, 2018 – EG Group is pleased to announce the successful management takeover and transaction completion from ESSO Italiana of approximately 1,100 ESSO service stations and about 100 fuel supply contracts for third party sites in Italy. This is part of the EG Group strategic partnership with ExxonMobil, making the organisation the largest single Retail Branded Wholesaler customer globally.

Italy is a new European market for EG Group to extend operations into and the acquisition facilitates an opportunity to secure further assets in the Italian market.

EG Group will look to do what it has successfully done across other markets – review the network in terms of retail potential, initially partner with and invest in a few locations with recognised global and local retail brands, understand the market dynamics and consumer perceptions with a view to then having the confidence to accelerate growth and development across Italy.

EG Group will actively engage and work with local brands, especially in terms of food-to-go, that have aspirations to franchise and grow. Reflecting the habits and demands of the Italian consumer is going to be critical to success.

Mohsin Issa, Founder and co-CEO, EG Group expressed:

“This announcement marks the start of the expansion of EG Group into Italy and other new markets during the course of 2018. For me, strategic brand partnerships are going to be important for the growth of EG Group in Italy.

Through our customer knowledge, insight and experience across Europe, we understand that people value time and are continually looking to access retail locations that satisfy multiple customer missions and provide excellent welfare to motorists.

Our business model enables customers to access a world-class fuel, convenience store and food-to-go offer. We have a local management team who will help shape our Italy investment.”

“Through this strategic partnership with EG Italia we have now completed our conversion to the new business model and we expect to see great results” said Gianni Murano, Esso Italiana Lead Country Manager. “The partnership combines EG Group strength as fuels retailer and its unique backcourt expertise with our high performing Esso fuels and marketing proposition. We will leverage our respective strengths to build a platform for growth and deliver to consumers a valued experience at Esso-branded service stations”.

The Italian market has a dedicated leadership team in place that will operate from the Da Vinci Business Centre in Rome. The site network will be further supported by regional offices in Milan, Turin, Bologna, Catania, Bari & Naples. EG Group have 96 employees working in Italy, some of whom transferred from Esso and others have been recruited for specific roles.

Salvatore Bianca, Country Manager (Italy), EG Group commented:

“Today is a very exciting day for EG Italia. I am confident, having completed the transfer and having established our support office in Rome, will enable our in-country management team to expand our strategic capabilities across Europe and formalise our reputation in Italy for being recognised as an effective fuel, convenience store and food-to-go retailer.

I would also like to take the opportunity to thank my local team and colleagues from the EG Group, ESSO, dealers, suppliers and our professional advisers who have supported us throughout the whole transfer process. The real work now starts.

We look forward to working with ESSO, our dealers, other retail brand partners, suppliers, contractors and stakeholders to provide high quality site services and the retail offer on our network.”

The Italian management team brings a wealth of knowledge and expertise to help shape the petrol forecourt offer.

Salvatore Bianca, Country Manager joined Esso Italiana in 1988 and since then has been working in various areas of the company leading large organizations in senior managerial roles including Italy Wholesales Fuels Manager, Italy ROC (Retail Operating Company) Manager, Distribution Joint Venture, Fuels Customer Service Manager with other assignments as Sicily Retail Sales Manager and Naples Terminal Manager.

Salvatore has also got international experience and has worked in Brussels and was responsible for the implementation of Retail Operating Company model in Europe including development of new SAP platform. Worked in Manchester as the Italy Customer Service Transition Manager.

Ugo Corridi, Retail Sales Manager:  Long established with 27 years’ experience within ESSO; leading from the front, Ugo has taken on the strategic operations role as Retail Sales Manager.  With a wealth of knowledge and expertise, including Retail Sales with ESSO Italiana and Europe, also encompassing Asset Management and Maintenance.  Leading the team to deliver outstanding service for our Dealers and Customers, improving the maintenance turnaround and maximising pump availability.  Ugo Corridi joins us with dedication and vision for the future.

Fabio Costa, Country Finance Manager:  Comes with over 24 years’ experience working for multinational companies, including BAT and ESSO.  A Senior Manager since 2001 within Financial Accounting, Statutory and Group Reporting, Controls, Compliance and Risk Management.  Implementation of SAP for the Italian and Global market,  as well as project managing M&A in Italy 2004 and 2008.  Establishing EG Italia Finance and the Accounts Receivable Team at our permanent home in Rome.

Elisa Marchese, Head of Legal: Formally ESSO Legal Advisor in Italy and Europe with many years of dedicated service, Elisa joins as Head of the Legal Team with EG Italia.  Having provided support on Legal matters in many areas of the Fuel and Retail business, including Contracts, Liabilities and disputes; Elisa has taken on the role of building the Legal Team in Italy, utilising & establishing contacts with partners and specialists.

Placido Baglio (Dino), HR Manager: Joins EG Italia from Adriatic LNG (Milan) after 7 years, and prior to this worked in the ESSO Company Operated business in Italy as the HR Manager.  With over 31 years’ experience and knowledge within Human Resources, covering many areas of the operations within the Fuel Industry.  Heading up the new EG Italia HR Team in Rome, looking forwards to implementing, establishing and working with a successful operations team during transition, and planning for the future.

EG Group and Kroger Announce Definitive Agreement

BLACKBURN and CINCINNATI, February 5th 2018 – EG Group announces petrol forecourt convenience retail expansion plans in United States by entering into a definitive agreement with The Kroger Co. (NYSE: KR) for the sale of their 762 site network for a consideration of $2.15 billion. Kroger’s convenience store business operates in 18 states and includes 66 franchise operations. The stores employ 11,000 associates and operate under the following banner names: Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger’s convenience store business generated revenue of $4 billion, including selling 1.2 billion gallons of fuel, in 2016. As part of the transaction, EG Group will establish their North American headquarters in Cincinnati, Ohio and continue to operate stores under their established banner names.

EG Group is a leading petrol forecourt convenience operator in Europe who currently owns and manages circa 2,600 sites across the United Kingdom, France, The Netherlands, Belgium, Luxembourg and Italy, employing over 12,500 colleagues across leading retail brands such as ESSO, BP, Shell, Carrefour, Louis Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs, Pomme de Pain and Subway.

As announced in late 2017, the business secured approximately 1,000 petrol forecourt assets from Esso in Germany which will be transferred and integrated into the existing network in Q4, 2018. With the inclusion of the Kroger assets, EG Group will own and operate circa 4,400 sites across Europe and the US. Mohsin Issa, EG Group Founder and co-CEO expressed: “This is an exciting time for EG Group, the entry into the US market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states. We have had much success across Europe and we firmly believe the Kroger assets present a fantastic foundation to overlay our retail experience and know-how in the US. We are committed to investing in the Kroger network, partnering with leading retail brands and working with the exceptional management team and associates transferring across to deliver a comprehensive retail offer.” “Our business model is simple but effective – EG Group is creating a stronger relationship between consumers and leading retail brands they want to access. In the US we aim to create a retail environment which delivers convenience, provides value and serves as a retail destination offering excellent welfare to motorists who live and work near our petrol forecourt convenience retail stores.” added Zuber Issa, EG Group Founder and co-CEO.

Mike Schlotman, Kroger’s executive vice president and chief financial officer commented:
“One of the most important considerations in our decision-making process was to enable continued operations to ensure minimal disruption to our associates. We are very pleased the EG Group plans to establish their North American headquarters in Cincinnati. EG Group is a recognized international petrol forecourt convenience operator and they have a commercial model which clearly looks to enhance the consumer offer by working with leading retail brands customers know and trust.

This transaction is good for our associates across the country and for our headquarter city of Cincinnati. Throughout the process we were impressed with the EG Group’s professionalism, investment commitment and more importantly their understanding of the US convenience retail market. We now look forward to working with them closely to ensure a smooth transition for associates.”

North America is an important strategic market for the EG Group and it has previously evaluated a number of potential acquisitions, where it believes its unique and innovative business model would be successful. The acquisition of Kroger’s convenience store business thus provides access to the world’s largest fuel convenience market to complement the EG Group’s European platform.

The combination with EG Group’s existing operations creates significant scale, which drives meaningful purchasing power for both fuel and non-fuel retail operations.

The transaction is still subject to regulatory approval.

Bank of America Merrill Lynch, Morgan Stanley and Barclays are acting as financial advisors to EG Group. Allen & Overy is acting as legal advisor to EG Group.

Goldman Sachs & Co. is acting as exclusive financial advisor to Kroger and Weil, Gotshal & Manges LLP is acting as legal advisor to Kroger.

EG Group and ExxonMobil agree to convert Texaco and Firezone stations

EG Group and ExxonMobil agree to convert Texaco and Firezone stations in the Benelux to ESSO branded stations.

  • Strategic conversion to a leading global brand with quality fuels and world-class refineries
  • Conversion will offer an outstanding customer experience with ESSO as a leading Brand with an extensive network in the Benelux
  • Operation strengthens the strategic European partnership between EG Group and ExxonMobil

Breda, The Netherlands, January 18th 2018 – EG Group and ExxonMobil in the Benelux announce that EG Group will convert several hundred stations in the Benelux to the ESSO brand in 2018. The first station is currently under conversion in Rotterdam on Adriaan Volkerslaan 8.

Currently EG Group has a network of more than 650 Texaco and Firezone stations in the Benelux. EG Group expects to start with the conversion during the first quarter 2018 with the vast majority completed before the end of the year.

Mohsin Issa, Co-CEO EG Group: “With the ESSO brand we add a very strong brand to our offering in the Benelux. We will be able to bring the SynergyTM fuels and Mobil-branded lubricants to our customers in The Netherlands, Belgium and Luxemburg. We will benefit from the strong innovation and marketing support from ExxonMobil as they will continue to focus on developing and marketing the ESSO brand in the Benelux. In combination with our efforts on the convenience and food-to-go side, we are working hard to bring the best brands and experiences to our customers”

Hugo Detré, ExxonMobil Retail Fuels Sales Director, Europe / Africa: “This extension of our partnership with EG Group will allow ExxonMobil to strengthen its position as one of the leading fuel networks in the automotive Retail market in the Benelux. The combination of EG Group’s high standards in operating service stations and their strong backcourt offer, together with our powerful ESSO brand, our quality SynergyTM fuels, and our marketing expertise will allow both companies to deliver an outstanding experience to our Retail customers in the Benelux”

Jan Michielsen, CEO ExxonMobil Benelux: “This agreement demonstrates our long-term commitment to the fuels market in the Benelux where we are also investing over 2 billion Euros in our world-class Antwerp and Rotterdam refineries to produce cleaner fuels and high-quality basestocks for automotive lubricants.”

EG Group and ExxonMobil have a close partnership. The two companies have already successfully established a branded wholesaler model for part of the portfolio in the UK and France and recently signed a similar agreement in Italy and Germany. The conversion to ESSO branded stations in the Benelux strengthens the strategic partnership with ExxonMobil on Retail as well as on other EG related assets. This conversion will make EG Group ExxonMobil’s largest Retail Fuels customer. This strong partnership will also give EG Group more opportunities to grow in the future as the true leading independent forecourt retailer of Europe.  The GO fuel card offered by EG Group will automatically be accepted at the converted ESSO stations, while these stations will also accept the ESSO card.