To address rising debts, the Issa brothers have divested 63 US convenience stores.
- The stores, located in Kentucky and Tennessee, were sold to Casey’s General Stores.
- This divestment aligns with the brothers’ strategy to mitigate incurred debts.
- Earlier this year, EG Group sold other assets to bolster financial stability.
- Key stakeholders express confidence in the transition and future operations.
In an initiative to tackle the financial challenges posed by a significant debt load, the Issa brothers have made a strategic decision to divest 63 convenience stores. Located in Kentucky and Tennessee, these outlets operated under the Minit Mart and Certified Oil fascias and are now under the ownership of Casey’s General Stores, a US-listed company known for its expansive presence. The acquisition is structured to ensure the retention of existing employees, thereby maintaining operational continuity.
This sale marks a pivotal step in the Issa brothers’ broader agenda aimed at reducing the debts amassed through their extensive retail acquisitions over the years. Notably, earlier in the same year, the pair orchestrated the sale of EG Group’s UK and Ireland operations to a major grocery retailer for a substantial sum of £2.27 billion. This transaction not only included the transfer of numerous petrol filling stations but also a myriad of food-to-go locations, signifying a comprehensive divestment of assets.
Further complementing this strategy, EG Group engaged in a sale and leaseback arrangement with Realty Income in March, encompassing 415 additional sites. This deal, valued at $1.5 billion, involves an annual rental agreement, demonstrating the group’s commitment to enhancing its liquidity while strategically utilizing its property assets. Co-founder Zuber Issa articulated confidence in the move, indicating that the divestment provides a viable pathway for EG Group to effectively execute its deleveraging plan.
Furthermore, Nick Unkovic, EG America president, noted the strength and success built within the stores sold, commending the workforce’s dedication. He expressed optimism about Casey’s ability to nurture these assets under its operational expertise. This sentiment reflects a shared vision for sustained growth and success amidst a challenging financial landscape.
The Issa brothers’ calculated divestment reflects a strategic commitment to fortifying financial resilience.
