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Grocery store chain Asda has agreed to purchase the UK and Irish operations of petrol station group EG Group in a £2.3bn deal.
The acquisition has been masterminded by the billionaire Issa brothers who co-own Asda and EG Group, which additionally operates petrol stations within the US, Australia and components of Europe.
Zuber Issa mentioned on Tuesday that the deal was “an vital strategic step” for EG Group, which is co-owned by personal fairness agency TDR Capital.
“Following this sale, EG Group will profit from a considerably strengthened steadiness sheet,” he mentioned in an announcement.
The proceeds from the sale, on high of $1.4bn secured from a current sale and leaseback deal within the US, will likely be used to repay EG Group’s debt, the corporate mentioned.
Asda’s transfer to amass EG Group’s UK and Irish companies comes about two and a half years after the Issa brothers purchased the grocery store chain with TDR Capital, in a deal that valued the UK grocer at £6.8bn.
Following the acquisition, the mixed group will span 600 supermarkets, 700 petrol forecourts and 100 comfort shops, with 170,000 staff and annual revenues of about £30bn.
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