Zuber Issa plans to treble the size of his forecourt estate to nearly 150 sites with an acquisition of Applegreen’s UK petrol filling stations.
The Blackburn-based entrepreneur expects to complete on the purchase of nearly 100 forecourts by the beginning of next month, and then will set about aligning them to his EG On The Move sites which feature electric vehicle fast charging and a strong emphasis on foodservice with sites often having more than one concession, such as Greggs and Subway.
The Applegreen branded forecourts will give Issa a greater presence in the south of England, with most of his current 47 forecourts being in the north of England and the Midlands. The company says that they “spatially complement” its existing network, enabling operational management efficiencies.
But his acquisition, which does not include Welcome Break motorway service areas (MSAs), will need investment with the sites generally in need of modernisation. Issa has identified fast electric vehicle charging, foodservice, including drive-thrus where space permits, and larger convenience stores as priority improvements.
Issa declines to comment on the value of the deal, which he says he has funded out of his own equity. He is not acquiring the Northern Ireland or Republic of Ireland sites which will remain with the Irish forecourt giant Applegreen.
It is the first significant purchase for EG On The Move since Issa sold his 22.5% share in Asda, and stepped down as co-chief executive of EG Group last autumn, in a break from the business empire he built with his brother Mohsin for over two decades.
This latest deal will also include around 40 foodservice concessions, including Subways and Greggs – brands which the business is already partnered with. And it will also include 1,100 members of staff, bringing the EG On The Move employee headcount to nearly 4,500.
The sites – 35% of which are freehold – will give EG On The Move a turnover of more than £1 billion.
The planned takeover immediately bolsters Issa’s plans to acquire up to 120 UK petrol station, convenience store and foodservice sites, over the next three years, after purchasing 34 forecourts in the north west of England from EG Group last autumn.
Applegreen confirmed back in June 2021 that it was trying to sell its UK petrol filling station business to concentrate on developing fewer and larger locations , and it said at the time that it was in talks with a number of parties. It says that it will use the proceeds from the transaction to invest in its business in Ireland, the UK, and the United States.
Applegreen Europe’s chief operating officer and chief executive of Welcome Break John Diviney says that Applegreen remains committed to the UK market through its majority stake in Welcome Break, and its growing electric vehicle (EV) charging business.
“We are currently growing the Welcome Break business by developing new build locations and revamping many of its existing sites.
“We have a strong pipelines of new MSAs to develop, and next week, we will open our new £55 million state-of-the-art location at Junction 33 of the M1 at Rotherham, which will include six food outlets and two retail offers, as well as fuel and EV charging options, and a dedicated HGV facility.”
He adds: “We are also planning to continue to grow our EV charging network in the UK market.”
Welcome Break employs more than 6,000 people throughout the UK at 59 sites, including 34 MSAs, and 31 hotels.
Issa’s new venture, EG On the Move, does not have any ties to EG Group or Asda.
