EG Group is a UK-based fast food outlet and petrol station operator. Its hosts Starbucks, Greggs, Subway, KFC, Carrefour, BP, Shell, and Esso. It currently has over 6,500 sites across the world, with 1,700 stationed in the US.
This article discusses everything we know about the EG Group IPO, including its acquisition history, valuation, and growth strategy. Let’s get right into it!
EG Group is one of the world's largest privately-owned convenience retailers and petrol stations.
Founded in 2001 by brothers Zuber and Mohsin Issa, the business grew from a single site in Bury, Greater Manchester to more than 6,500 sites across the UK, Ireland, Australia, Europe, and the USA.
With an average annual revenue of $30 billion, EG Group continues to outperform the wider market through its strategic objectives. The group employs over 55,000 people and serves 1.3 billion customers annually.
Even if you haven’t heard of EG Group, you’ve likely purchased something from one of their many stores. Some of EG Group’s brands include:
EG Group acquired 146 KFC outlets in the UK and Ireland in 2020, making it KFC’s largest franchisee in the country.
The group bought the supermarket chain Asda from Walmart in 2021 for £6.8 billion (approximately $7.4 billion), bringing it back to British land after 20-odd years.
It also bought Leon Restaurants for £100 million ($120 million) and Cooplands—UK’s second-largest bakery—for an undisclosed amount in the same year.
In the US, EG Group acquired 54 Fastrac Branded sites and 69 Certified Oil sites in 2019. A year later, it entered a binding agreement for the acquisition of Schrader Oil in 2020.
Billionaires Zuber and Mohsin Issa talked of their plans to go for an initial public offering in 2019 but didn’t confirm a date as to when it’ll happen.
According to Bloomberg, EG Group plans to either list the company in the stock market at a valuation of £10 billion (approximately $12.4 billion) or put itself up for sale with a price tag of $15 billion.
EG Group’s revenue comes from three sources: convenience retail, fuel, and food.
Its operations fall under a COCO (Company-Owned, Company Operated) business model, meaning that it has control over store infrastructure, pricing, customer service, and everything in between.
EG Group’s growth strategy is fairly straightforward: acquire and invest in new markets in various geographical locations.
Though mostly oil-dependent, EG Group has been increasing its non-fuel amenities by the year. The company aims to make at least 70% of its revenue through its merchandise, grocery, and food service by 2030. Currently, these divisions stand at 46% of the company’s revenue.
EG Group has yet to announce an official IPO date but hopes to go public sometime in the future. The exact date is anyone’s guess; it could happen in mid-2023 or around 2024. For now, EG Group is more focused on further expanding its global empire.
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