Euro Garages has confirmed the completion of its deal to acquire 45 Esso sites (Forecourt Trader, October).
The sites in the North West, North East, Yorkshire and North Wales will increase the group’s estate to 120 outlets, with 75 BP sites and 45 Esso. Retail on the sites will be converted to Spar-branded convenience stores over the coming months.
Mohsin Issa, managing director of Euro Garages, said: “This is a transformational acquisition for our business, which accelerates our consolidation strategy in the UK and increases our presence in a number of important regions. It also fits perfectly with our retail proposition, which is based on partnering with quality brands to offer our customers the very best experience and value across our forecourts.”
Zuber Issa, chief executive officer of Euro Garages, added: “This acquisition adds a collection of premium location sites to our portfolio, providing considerable opportunity for further development and value creation in the estate alongside our partnership brands. It also brings a team of skilled, customer-focused employees who will be crucial to our continued commitment to service on the front line.”
Paul Foster, deputy area director for Lloyds Bank Commercial Banking in the North West, which arranged funding for the acquisition, said: “While many businesses in the sector are hunkering down in the face of challenging conditions, Euro Garages is a prime example of a business with the confidence to invest in order to drive its growth strategy. We’re keen to show our commitment to backing mid-market companies like Euro Garages, where our support and expertise can help support economic growth in the regions.”
Blackburn-based Euro Garages reported sales growth of 3% to £314m (2011: £305m) in the 12 months to 31 July 2012. This included growth in the total value of fuel sales as well as a sharp increase in retail sales from its Spar convenience stores and partner brands, which include Starbucks, Subway and Burger King.
In 2012, the business announced a five-year agreement with Starbucks to open 100 additional drive-thru coffee outlets, with around 25 already trading successfully.
Esso confirmed it had commenced the transfer to Euro Garages of the company owned service stations in the Northern England and North Wales area and had agreed a long-term branded fuel agreement.
A spokesman for the company said: "ExxonMobil will continue to serve the retail market in Northern England and North Wales, with Euro Garages supplying Esso-branded fuels at these sites.
"Customers will be able to buy the same high quality Esso fuel and Mobil 1 lubricant products, will continue to use their Esso cards, and can expect the same buying experience at sites operated by Euro Garages under the Esso brand."