The Issa brothers have taken a significant step to manage their debt by selling 63 US convenience stores.
- The stores, located in Kentucky and Tennessee, have been acquired by Casey’s General Stores.
- Employees of the sold stores are expected to be retained under the new ownership.
- This sale follows previous asset divestments, including the £2.27bn sale of UK and Ireland operations to Asda.
- EG Group is actively engaging in strategies to reduce its financial liabilities.
In a focused move to address EG Group’s growing debt, the Issa brothers have sold 63 convenience stores in the United States. These stores, part of the Minit Mart and Certified Oil brands in Kentucky and Tennessee, are now under the ownership of US-listed Casey’s General Stores. As part of the transaction, Casey’s is expected to retain the current workforce, ensuring job stability amidst the transition.
Previously, the Issa brothers completed a major divestment involving the sale of EG’s UK and Ireland operations to Asda for £2.27 billion. This significant transaction included over 350 petrol stations and more than 1,000 food-to-go sites, marking a substantial reorganisation within the group’s asset portfolio.
Strategically, EG Group engaged in a sale and leaseback agreement with Realty Income in March, valuing at $1.5 billion for 415 sites. This arrangement includes an annual rent commitment of $103 million. Such financial maneuvers are part of EG Group’s broader strategy to deleverage its balance sheet.
Co-founder Zuber Issa expressed satisfaction with the divestment, highlighting it as a step towards executing strategic goals for both parties involved. He referred to it as an important aspect of the group’s deleveraging efforts. EG America president Nick Unkovic praised the strong business foundation of the sold stores and expressed confidence in Casey’s capability as the new operator.
These divestments reflect the Issa brothers’ ongoing efforts to reshape their business holdings effectively, aiming to stabilise and potentially enhance their financial footing.
The asset sales, including the convenience stores and prior UK and Ireland transactions, underscore the Issa brothers’ dedication to financial realignment and debt management.
