The Issa brothers have sold 63 of its US convenience stores to pay down EG Group’s growing debt pile.
The stores, which trade under the Minit Mart and Certified Oil fascias across Kentucky and Tennessee, have been sold to US-listed Casey’s General Stores, with the new owners expected to retain the employees.
It is the Issa’s latest asset sale as the pair look to reduce the debt built up from building its retail empire.
The brothers sold EG’s UK and Ireland operations to Asda earlier this year for £2.27bn. The deal, which is due to complete in the fourth quarter, will see the grocer obtain 350 petrol filling station sites and over 1,000 food-to-go locations.
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EG Group also struck a sale and leaseback deal with Realty Income in March for $1.5bn (£1.3bn) on 415 sites, which it will pay an annual rent of $103m (£80.9k) for.
Co-founder and co-chief executive Zuber Issa said: “EG Group is pleased to have found a new home for some of our Certified Oil and Minit Mart portfolio. This divestment will enable both parties to execute their strategic plans, respectively.
“For EG Group, this divestment also represents another important step in executing our deleveraging strategy.”
EG America president Nick Unkovic said: “We have built a strong and successful business over the years in these Certified Oil and Minit Mart stores, and we are proud of the hard work and dedication shown by our team members there. Casey’s is an excellent operator, and we are confident these stores and team members will continue to thrive under their ownership.”
