WESTBOROUGH, Mass. — EG Group has entered into a binding agreement for the acquisition of Schrader Oil in the United States. Schrader Oil, Fort Collins, Colo., currently operates 18 convenience stores and gas stations in northern Colorado.
EG Group already operates a network of 88 Loaf 'N Jug c-stores in Colorado. “The combination of the two networks is an exciting opportunity to invest in the locations and further improve the customer offer,” the company said.
The company will rebrand the Schrader Oil sites, operating under the Schrader’s brand, to its Loaf 'N Jug brand to provide customers with a consistent service and offer across its network in Colorado, EG Group said.
“We have a firm commitment to continue growing our presence in the USA, the world's largest convenience market. We are extremely pleased to have reached an agreement to acquire Schrader Oil as another strong network addition to our existing business,” said Mohsin Issa, founder and co-CEO of EG Group, Blackburn, U.K. Moshin and Zuber Issa were among CSP’sPower 20 for 2019.
“We are thrilled to be passing the baton to a highly successful and growth-oriented company in EG,” said Steve Schrader, president of Schrader Oil. “We believe they have the capability to take our success and continue to support our community for many years to come. We believe we have found the best fit for our family, our employees and our community.”
- EG America is No. 5 on CSP's 2020 Top 202 ranking of c-store chains by number of retail outlets. Click here to read CSP’s exclusive look at EG Group’s U.S. strategy.
In the United States, through Westborough, Mass.-based EG America Inc., EG Group owns and operates the Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf 'N Jug, Minit Mart, Quik Stop, Tom Thumb and Turkey Hill c-store brands. The purchase of Schrader Oil will take EG Group's network to more than 1,700 stores across the country, operating in 33 states and retailing more than 2.5 billion gallons of fuel with merchandise sales of more than $3 billion on an annualized basis.
In 2018, EG Group acquired Kroger’s 762-site c-store network. Also in 2018, it acquired 225 Minit Mart c-stores from TravelCenters of America LLC, Westlake, Ohio. In 2019, EG Group also signed agreements to acquire 54 c-stores from Fastrac Markets LLC, East Syracuse, N.Y., and 69 c-stores from Certified Oil, Columbus, Ohio. It acquired Cumberland Farms and its nearly 660 c-stores in the Northeast and Florida in 2019.
EG Group and Schrader Oil did not disclose the terms of the transaction, but the deal is being funded using existing cash reserves and is not material to EG Group's balance sheet. They expect the transaction to close by the end of 2020, subject to customary regulatory approvals. All site and field-based employees of Schrader Oil will transfer to EG Group, said the company.
Founded in 2001 by the Issa family, EG Group is a global petroleum forecourt retail convenience operator that has established partnerships with global brands. The business has an established pedigree of delivering an excellent fuel, grocery and merchandise, and food service.
EG Group currently has approximately 6,000 retail sites across Europe, the United States and Australia.