EG Group agreed to sell its remaining United Kingdom forecourt business and certain standalone foodservice locations to co-founder Zuber Issa for £228 million (roughly $292 million).
Zuber will step down as co-CEO of EG Group when the transaction is completed later this year, with co-founder Mohsin Issa continuing to lead the business as sole CEO. Zuber will retain his existing shareholding in the company and remain on the board as a non-executive director. TDR Capital and Mohsin’s shareholdings in EG Group will also remain unchanged.
“On behalf of the Board of EG Group, I would like to thank Zuber for his incredible leadership, which has been central to building one of the largest and most entrepreneurial private companies in the United Kingdom. EG Group is a U.K. success story on the global stage that has created significant opportunities for people in Blackburn and other local communities in the Group’s international markets—and pioneered the foodservice model at the roadside,” said Lord Stuart Rose, chairman of EG Group.
Rose continued, “With Mohsin remaining as sole CEO, the business is in the right hands and well-placed for further success. I look forward to continuing to work with Mohsin and Zuber on the Board of EG Group as we focus on growing the international business and ensuring EG plays a key role in the energy transition.”
Mohsin noted in the press release that, “Given our shared background in building great businesses, the Board and everyone at EG understand Zuber’s desire to return to his entrepreneurial U.K. roots by acquiring the remaining U.K. forecourt business including new-to-industry developments and certain standalone foodservice concessions—as well as dedicating more time to his family and our charitable activities.”
Together, Mohsin and Zuber said: “We have had an amazing journey together building EG Group over the last 20 years and we look forward to continuing to work closely together as fellow Board members and shareholders in EG Group. The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business. We are both—and the wider Board—laser-focused on our key growth opportunities. Encouragingly, following the significant progress to strengthen our balance sheet, we have a capital structure which allows us to take advantage of the opportunities ahead of us continuing to deliver our best-in-class services to our customers around the world.”
EG Group also announced the appointment of Russell Colaco as Group Chief Financial Officer. He will succeed Michael Bradley who has decided to step down to pursue other opportunities.