UK based EG Group, owned by Co-CEOs Mohsin and Zuber Issa brothers, has reached an agreement to acquire a 285 chain of petrol station forecourts in Southern Germany from OMV Deutschland GmbH, for €485 million.
The OMV sites are primarily in the Bavaria and Baden-Württemberg regions. EG already operates sites under the ESSO fuel brand. As part of the agreement EG will inherit existing fuel supply agreements from OMV.
In October, EG Group has agreed to acquire Asda, Walmart’s wholly-owned UK business, for £6.8 billion ($8.7bn).
Zuber Issa, co-Founder and co-CEO of EG Group, commented: “We are very pleased to have reached an agreement to acquire the OMV retail business in Germany. The acquisition is an exciting opportunity for us to expand EG Group’s footprint in Germany, a key European market where we see significant growth potential. We look forward to integrating the business into our broader portfolio and further strengthening it through our expertise in Grocery & Merchandise and Foodservice.”
Mohsin Issa, co-Founder and co-CEO of EG Group, added “The OMV team that will join the EG family have done an outstanding job of positioning the portfolio for success. The business delivers fuel throughput of approximately 1 billion litres per annum and has a loyal customer base. The supply agreements we will inherit are extremely competitive and alongside the continuation of OMV fuel card acceptance, provide a solid foundation on which we can continue to build.”
The purchase price of €485 million is subject to customary net working capital and net debt adjustments, is being funded using existing cash reserves and facilities, and will be leverage neutral for EG Group. EG has also agreed to assume outstanding lease liabilities, implying a total enterprise value of €614 million.
The transaction is expected to close in 2021, subject to regulatory approvals.