The Issa brothers have divested 63 US convenience stores to address EG Group’s mounting debt.
- The stores in Kentucky and Tennessee, under Minit Mart and Certified Oil, now belong to Casey’s General Stores.
- This sale marks another move in EG Group’s strategy to deleverage its considerable liabilities.
- The Issa brothers previously sold UK and Ireland operations to Asda for £2.27bn.
- A recent sale and leaseback with Realty Income for 415 sites illustrates their ongoing financial restructuring.
The Issa brothers have taken a decisive step towards reducing EG Group’s debt by selling 63 US-based convenience stores. These stores, operating under the Minit Mart and Certified Oil brands, were acquired by Casey’s General Stores, a move anticipated to preserve the employment of current staff.
Operating primarily in Kentucky and Tennessee, these stores have been a part of the Issa brothers’ strategy to mitigate the substantial debt accumulated during the expansion of their retail empire. The brothers had earlier divested EG’s operations in the UK and Ireland to Asda for a staggering £2.27 billion. This particular transaction gave Asda control over 350 petrol stations and in excess of 1,000 food-to-go outlets.
This recent sale represents one element of EG Group’s broader strategy to deleverage. In March, the group entered into a considerable sale and leaseback arrangement with Realty Income, involving $1.5 billion for 415 sites, which EG Group will continue to utilise under a leasing agreement with an annual rent of $103 million.
Co-founder and co-chief executive, Zuber Issa, commented on the sale, affirming EG Group’s satisfaction in transitioning some of the Certified Oil and Minit Mart locations to new management. “This divestment will enable both parties to execute their strategic plans, respectively,” he stated, underscoring their commitment to financial recovery and operational focus.
Nick Unkovic, President of EG America, added to this narrative by expressing pride in the business built over the years at these locations. He conveyed confidence in Casey’s General Stores as capable operators poised to continue the stores’ success, highlighting the dedication of their team members.
The Issa brothers continue to implement a thorough debt reduction strategy for EG Group through strategic asset sales.
