Asda billionaires plot $300m convenience store takeover

Asda’s owners are building up their American empire as they move towards the $300 million acquisition of a convenience store chain.

EG Group, founded by the Issa brothers, is thought to be nearing a takeover of Sprint Food Stores, which owns 34 sites across Georgia and South Carolina.

Sky News reports that the deal, which would give EG a presence in 33 states, could be signed within days.

It comes despite news that the company had hired investment banks to consider breaking up its overseas operations.

READ MORE: Issa brothers could bring mini-Asdas to Europe

Mohsin and Zuber Issa bought Asda last year with private equity firm TDR Capital for £6.8 billion .

A £750 million deal for EG to buy Asda’s petrol stations recently collapsed, prompting the supermarket to take on an extra £500 million of debt.

Since being founded in Blackburn, EG has steadily expanded through a string of acquisitions, and now operates around 6000 sites in ten countries.

Its earnings – before interest, taxes, depreciation and amortisation – are thought to have reached $1.4 billion over 2020.

The company declined to comment on the Sprint Foods deal.

It comes after reports that the Issas could open convenience stores on their 3000 petrol stations across mainland Europe.

Around 200 “Asda on the Move” shops are meant to open in the UK by the end of next year.

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