“Send me your weak and suffering, and we’ll buy you.”
That’s precisely what the late Pete Sodini shared with me in 1999 when outlining a fundamental secret of The Pantry’s mergers and acquisitions (M&A) strategy, which he aptly described as, “We’re like the Statue of Liberty.”
Sodini viewed the huddled masses of mediocrity as primary staging to create value for the private equity-led company that correctly saw fragmentation as an opportunity.
Less concerned about asset quality, The Pantry hungered for brick and mortar. Lots of then—a Southeastern stretch of mostly mom-and-pop chains tallying 10 to 50 locations, augmented by the occasional larger deal.
Pete wasn’t alone. That was the guiding philosophy governing outside parties eager to roll up smaller brands, optimally bundle them into an initial public officer (IPO), and make a lot of money.
For some it worked, for others, it ended in abrupt closures and bankruptcies. How very 1980s and ‘90s.
We are often taught that history repeats itself. And indeed, at times it does. But other times, lessons are learned, even if it is a bit late.
Two great examples are Arko/GPM Investments and EG America.
- GPM Investments LLC is No. 10 on CSP’s 2026 Top 40 update to the 2025 Top 202 ranking of U.S. c-store chains by store count. EG America LLC is No. 6. Watch for the full 2026 Top 202 ranking in June.
If you haven’t read the outstanding CSP March cover story, “Arko Hits Reset,” our editors Diane Adam and Chuck Ulie described how the Richmond, Virginia-based acquisitional aggregator pumped the brakes. After 20-plus years of dealmaking, Arko and its CEO Arie Kotler are changing course.
And for good reason. Any industry observer would tell you that Arko’s retail assets varied dramatically. For every “show” location, there were others representing the tired legacies of three and four decades ago.
Arko is not alone. This is the reality of many acquisition-first companies. The difference is most have either sold or dissolved. Kotler, who entered the U.S. retail game in the early 2000s, stayed, diversified the company’s portfolio to include not only retail but downstream fuel logistics, and helped take Arko public.
Now, he and his leadership team are doing what several mid-size fuel marketers like The Wills Group have done, and that is to dealerize weaker, more limited assets with modest corporate investments in infrastructural upgrades, programming and loyalty, while infusing fresh rewards, stronger foodservice and enhanced category management at their GPM company-run sites.
Put simply, growing store count for the sake of raw numbers is bad business.
“We also hit the pause and reset,” a CEO of another M&A-minded chain shared with me last year. “Truth is we were buying too fast and not really taking inventory of what we had. Our sets were all over the place and there was no real experience for our guests.”
This company has been investing in building a consistent brand, store design, technology and customer experience. The moves have also lowered turnover and improved recruitment.
EG Group rebrands to Cumberland Farms
This brings us to EG America, freshly minted Cumberland Farms. Originally coined EG Group, the UK-based entity founded by brothers Mohsin and Zuber Issa stunned the U.S. c-store establishment in 2018 when it acquired Kroger’s convenience assets for $2.15 billion.
Soon after, EG sent further shockwaves, acquiring Cumberland Farms, a dominant player across the Atlantic. In short order, EG was shepherding roughly 1,500 stores and 10 banners, from Cumberland Farms, Fastrac and Sprint Food to Turkey Hill, Tom Thumb and Loaf ‘N Jug.
Impressive. And problematic. EG’s growth both in the U.S. and Europe featured staggering debt and significant structural and cultural roadblocks.
The gaps between U.K. assumptions and U.S. market realities were stark. Even worse was the lack of a clear brand(s) strategy.
I have long believed and been on record that Cumberland should not only be the lead brand, but the face of the company. The loyalty, training, innovation and pioneering spirit buoyed by Cumberland’s previous family -owned CEO Ari Haseotes could have electrified EG’s roster of brands and potentially leveraged an IPO.
In 2024, facing various headwinds, EG started the facelift, converting Tom Thumb locations to Cumberland Farms, and earlier this year embraced a similar effort involving the Loaf ‘N Jug sites.
Then, in a March announcement about its acquisition of Pittsburgh-based Coen Markets, a bigger news item was easily missed. Rather than saying EG, the news release said Cumberland Farms had bought Coen.
EG had finally come to realize the moral of the story. No brand matters more than the name of the company itself.