EG Group has completed the sale of all but 32 of its c-store and fueling locations in the U.K. and Ireland to sister supermarket company Asda for $2.5 billion, according to a Tuesday announcement.
The move allows EG Group to turn its attention to its plan to become a “multi-purpose” convenience retailer as it aims to enhance its foodservice, grocery and merchandise offerings across its international network, the company said in the announcement.
As the deal closes, EG Group will continue operating convenience stores in the U.S., Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium. It will also retain certain foodservice brands, including its bakery business and franchise deals with Starbucks, KFC, Sbarro, Chaiiwala and Cinnabon.
EG Group will also continue operating its EV charging program which, as of last year, was live at 98 locations in the U.K. and Europe and planned for 50 stores in the U.S.
Tuesday’s announcement comes about five months after the convenience retailer disclosed plans to offload these assets to relieve various amounts of debt. The $2.5 billion proceeds from the deal will be used to repay these debts, as will the $1.4 billion gained from its sale-leaseback deal with Realty Income Corporation, the company said.
“The sale of the majority of EG Group’s U.K. business to Asda represents an important strategic step for the company, enabling EG to support the continued roll out of its successful convenience retail, fuel and foodservice strategy and drive innovation to transform the consumer experience,” Zuber Issa, co-CEO and co-founder of EG Group, said in the announcement.
Blackburn, U.K.-based EG Group operates 5,500 convenience stores across its network.