BLACKBURN, U.K. — EG Group has completed its acquisition of Cumberland Farms.
The transaction, announced in July, was finalized Oct. 22, according to Blackburn, U.K.-based EG Group. The integration of Cumberland Farms’ assets brings the number of sites in EG Group’s Cincinnati-based U.S. division, EG America, to 1,680 gas stations and convenience stores in 31 states.
“The Cumberland Farms acquisition represents another significant step in our ambition to build the most compelling, comprehensive and effective convenience customer retail network across the USA,” said Zuber Issa, founder and co-CEO of EG Group. “Cumberland Farms is a well-invested, modern retail network. The Haseotes family have also invested in creating a leading-edge warehouse and commissary, established supply and logistics, developed an effective e-commerce and digital platform, and created own brand merchandising. All these investments, in my opinion, further extend our omnichannel retail capabilities and provide further strategic options for us to consider when developing a robust convenience offer.”
- EG Group is No. 8 in CSP’s 2019 Top 202 ranking of c-store chains by number of retail outlets. Cumberland Farms is No. 15.
With the closing, Ari Haseotes, president and CEO of Westborough, Mass.-based Cumberland Farms, said his goodbyes to colleagues Oct. 22.
“Being a third-generation founding owner and operator, I have an immense amount of gratitude for the Cumberland Farms team and what we have achieved together,” he said. “This is the right next step for Cumberland Farms and creates an incredible opportunity to expand and grow the existing business into the wider EG Group global network. In that regard, I couldn’t be more pleased with the historical milestone achieved today.”
Mohsin Issa, founder and co-CEO of EG Group, said, “Our investment in Cumberland Farms, following our recent acquisitions of Fastrac, Certified Oil and Minit Mart all within a year, demonstrates our commitment to investing in convenience retail in the USA. Cumberland Farms has an extraordinary heritage, one that we want to protect, develop and grow. ... I personally look forward to working with Cumberland Farms management team to further explore how we can enhance the convenience-retail experience.”
Financial advisers to EG on the deal included Morgan Stanley, Goldman Sachs, Barclays, PwC and Rothschild & Co. Cumberland Farms enlisted Bank of America Merrill Lynch as financial adviser on the transaction.
Founded in 2001 by the Issa family, Blackburn, U.K.-based EG Group is a gasoline forecourt retail convenience operator that has established partnerships with global brands. It has about 5,400 sites in Europe, the United States and Australia.