EG Group is “disposing” of 26 non-core Minit Mart convenience stores for total gross proceeds of $48 million in a transaction expected to be completed during the first quarter of the year.
In 2016, EG Group acquired 225 Minit Mart convenience stores from Westlake, Ohio-based truckstop retailer TravelCenters of America for approximately $330.8 million.
The sale, which the company said will not affect earnings before interest, taxes, depreciation and amortization (EBITDA), is related to a larger deal. EG Group offered no further details.
The news follows a deal in early March in which EG Group agreed to the sale and leaseback on a portfolio of its sites on the East Coast with Realty Income Corp., San Diego, for a total consideration of nearly $1.5 billion. This portfolio—which EG America will continue to operate and trade—consists of 415 store assets under the Cumberland Farms, Fastrac, Tom Thumb and Sprint banners.
The companies expect the Realty Income transaction to close in second-quarter 2023, subject to customary closing conditions, and EG Group will use net proceeds to repay debt. The assets represent 15% of EG Group’s total freehold property in 10 markets worldwide, “reflecting how its estate continues to be underpinned by strong asset backing globally,” it said. Following completion of the transaction, EG will pay an initial rent of $103 million per year with respect to these assets.
EG Group will use the net proceeds of the Realty Income deal to repay debt.
“Given our well-diversified business with a strong asset backing, we can access multiple pools of liquidity to help reduce the overall quantum of our debt, including further partial real estate monetization and/or potential asset sales, which we will consider utilizing as part of our plan,” the company said.
- EG America is No. 5 on CSP’s 2023 Top 40 update to its 2022 Top 202 ranking of U.S. c-store chains by store count.
EG Group established itself in the United States in 2018 as EG America by acquiring Cincinnati-based Kroger’s 762-site c-store network. It acquired Minit Mart in 2018. And in 2019, among other acquisitions, EG Group acquired Cumberland Farms and its nearly 660 c-stores in the Northeast and Florida, and EG America now has its headquarters in Westborough, Massachussetts. With more than 1,750 sites across 33 states, U.S. c-store brands include Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf N’ Jug, Minit Mart, Quik Stop, Sprint Food Stores, Tom Thumb and Turkey Hill.
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