The Issa brothers’ international forecourt business EG Group is planning to reduce its debt by selling off its Italian arm.
It has agreed terms with five Italian forecourt operators – PAD Multienergy, Vega Carburanti, Toil, Dilella Invest and GIAP to dispose of more than 1,200 of its sites by the end of 2025.
EG Group, which operates around 5,600 sites across Europe, Australia and the US, says that the £367 million sale is part of its strategy to focus on its core markets, as well as to strengthen its balance sheet.
It represents a complete exit from Italy for the Blackburn-headquartered business, which is owned 50% between Zuber and Mohsin Issa, who sit on the firm’s board as non-executive directors, and 50% by private equity firm TDR Capital.
EG Group entered into the Italian market following an acquisition from Esso in Italy in 2018, with the office for the Italian market established in Rome. The business employs 400 people, and the fuel brand offer is exclusively Esso. Most of the 1,200-plus sites are dealer operated, with a small number operated by EG Group with commissioned partners.
Russ Colaco, chief executive of EG Group, says: “We remain focused on driving forward EG Group’s growth strategy.
“This important transaction is fully aligned with this strategy, as we continue to focus on our core markets with the greatest growth potential and deliver on our deleveraging programme.”
The consortium of representatives purchasing EG Italia says: “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 organisation, heir to the culture of Esso Italiana since 2018.”
The news comes after Zuber Issa told the Financial Times that he thought EG Group should sell its US arm instead of floating the entire group in New York.
EG Group was founded in 2001 by the Issa brothers with a single site. The brothers went on to invest in Asda, with Zuber Issa selling his shares in the supermarket group to TDR Capital last year to set up his own business, EG On The Move, in the UK.
