EG Group sells Italian arm in €425m deal
EG Group has agreed to sell its Italian division to a consortium of local fuel operators in a deal valuing the business at €425m (£367m).
The Blackburn-based forecourt giant, co-founded by Asda investor brothers Mohsin and Zuber Issa and backed by TDR Capital, said the move is part of its plan to focus on core markets and cut debt.
CEO Russ Colaco called the sale “fully aligned” with its growth strategy and thanked Italian staff for their “hard work and dedication”.
He said: “We remain relentlessly focused on driving forward EG group’s growth strategy… We continue to focus on our core markets with the greatest growth potential and deliver on our deleveraging programme.
The buyer group, made up of PAD Multienergy, Vega Carburanti, Toil, Dilella Invest and GIAP, said the acquisition will create synergies to grow its fuel station network and expand services with an eye on the energy transition.
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The deal, subject to regulatory approval, is expected to be completed by the end of 2025.
On the deal, a statement from the consortium added: “The acquisition of EG Italia allows us to generate new and key synergies for the development of the fuel stations network with the expansion of the services offered also with a view to the energy transition.
“The EG network together with the networks of the Consortium members, all leaders in their reference territories, will enhance the know-how and skills of the EG Italia organization, heir to the culture of Esso Italiana since 2018.”
The news follows Zuber Issa telling the Financial Times on Sunday (12 August) that he thought EG Group should sell its US arm rather than floating the entire group in New York.
Last month, EG Group, which operates a chain of convenience stores as well as food services and fuel stations, has announced that Mark Segal will take on the role of group chief financial officer effective immediately.
3 Comments. Leave new
Hopefully these fuel profiteers will soon go down the pan
Growth by selling everything you own? Seems like they’re trying to unload everything before they lose it all.
Sound strategically aligned!