3 minute read
EG Group
by 55 North
FORECOURTS
EG Group divests 27 forecourts
The sale addresses competition concerns relating to the acquisition of Asda.
EG Group has entered into a binding agreement to divest 27 petrol stations, located in the UK, to Park Garage Group.
This follows the Competition and Markets Authority’s June 2021 announcement that it had agreed formal undertakings offered by the Issa brothers and TDR Capital to divest 27 of EG Group’s forecourts to address competition concerns relating to its Asda acquisition.
The CMA found that the deal might lead to higher petrol prices in 36 areas of the country where the companies’ networks overlap and in auto-LPG in another area.
The sites that had to be sold were: Ashington (NE63 0TQ), Burscough (L40 5XE), Churchill (PE25 2RJ), Dragon (HG1 4PS), Egremont (CH44 0BZ), Reliance (PR8 3BJ), John Adams Way (PE21 6TQ), Kingshill (SN1 4NG), Lakeland (LA14 5LF), Lammascote (ST16 3TA), Maple (SL7 1HH), Northern Gateway (TD15 1QQ), Preston Way (BB2 6BJ), Regatta (RG9 1DR), Rodbourne (SN2 1DH), Scot Lane (WN5 0PS), South Marson (SN3 4RS), Tibicar (LA3 1PS), Thinford North (DL17 8RU), Turnpike (HP12 4RG), Blackpool (FY3 9TN), Pentre (CF41 7BW) Four Cross (TR10 9AN), Thieves Lane (SY2 6GF), Forfar (DD8 1BF), Rushden (NN10 0FX), and Don (AB24 1XN).
EG colleagues employed at the sites will transfer to Park Garage Group.
Zuber Issa and Mohsin Issa, co-founders and co-Chief Executives of EG Group, commented: “We are pleased that the sites will be going to an established industry operator in Park Garage Group, a family-run business that is growth orientated.”
Balraj Tandon and Sunil Tandon, Chairman and Managing Director of Park Garage Group, added: “The acquisition underlines our commitment to growth and innovation, and will enable our sons, Manoj Tandon and Hemant Tandon, to further build our industry footprint. We would like to thank EG Group for working seamlessly with us on this acquisition.”
EG Group buys Cooplands
The group plans to expand the bakery brand into the forecourt and convenience retail channel.
EG Group is has bought CS Food Group, known as Cooplands, the UK’s second-largest bakery chain.
Cooplands owns and operates three bakeries that process ingredients and manufacture fresh food distributed to about 180 stores and cafes, predominantly across the north-east of England and Yorkshire.
EG Group says the purchase will “provide a platform to diversify the Cooplands brand into the transient petrol forecourt and retail convenience store channel, alongside the bakery chain’s traditional store formats, through EG Group’s extensive UK network.”
EG Group plans to invest in the Cooplands brand and fresh food offer.
Zuber and Mohsin Issa, Founders and Co-Chief Executives of EG Group, said: “Cooplands has a proven track record in the fresh bakery sector and vertical integration with EG Group will help to further drive our success in foodservice, where we continue to see strong growth opportunities.
“The transaction will broaden the reach of Cooplands beyond the brand’s northern heartlands and bring its muchloved food to more existing and new customers through EG Group’s unparalleled network of roadside forecourts and retail convenience stores.”
EG GROUP BOOSTS PAY ACROSS PETROL STATIONS
EG Group has increased rates of pay across all its petrol stations and foodservice brands in the UK from 1 October 2021.
Every employee aged 18 and above will now be paid a minimum of £9.50 per hour and more experienced colleagues – such as team leaders and supervisors – will be paid a minimum of £10.00 per hour. The changes represent an average hourly wage increase of more than 5%.
Mohsin and Zuber Issa, Founders and Co-Chief Executives of EG Group, said: “Our colleagues have pulled out all the stops and been nothing short of heroic during often very difficult times since the start of the pandemic. It is due to their hard work and dedication that EG has continued to be a growth business, performing strongly over the past 12 months.”
