New kid on the block cements its reputation as a global consolidator,
WESTBOROUGH, Mass. — In 2019, five convenience-store chains rose to the top of the most aggressive growth companies in the industry. As part of its 2020 Top 202 list, CSP analyzes those chain’s standing in mergers, acquisitions and new-store construction.
Headquarters: Blackburn, U.K.
2020 Rank: No. 5 (EG America in the United States)
Code Name: High Roller
Insight:Having rapidly expanded in the United States, the retailer has a reputation of outbidding rivals for highly coveted assets.
Beginning with its acquisition of Kroger’s portfolio of 762 c-stores in 2017 and going into its 2019 purchase of the 562-store Cumberland Farms chain, EG Group–and now its U.S. subsidiary, Westborough, Mass.-based EG America–has cemented its reputation as a global consolidator within the channel.
EG Group recently threw its hat into the ring for Australian refiner-marketer Caltex. While EG’s bid for Caltex was rejected, EG is known to significantly outbid its rivals for coveted assets. In the case of Cumberland Farms, one source says the bidding brought multiples from the more traditional high single digits into double-digit territory.
In just three short years, the European juggernaut has amassed 1,679 U.S. locations, coming from nowhere to hit No. 5 in CSP’s Top 202 ranking of U.S. convenience chains by store count.
At the helm of this phenomenon are Zuber and Mohsin Issa, two brothers who started in the family business with a single petrol station back in England. Because the company has engaged in several significant, highly leveraged deals, CSP asked EG Group how the pandemic has affected its business. Officials declined to respond.
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