Business magnate Zuber Issa advocates for the sale of EG Group's prosperous US forecourt enterprise, valued at over $5 billion.
Zuber Issa, co-founder of EG Group, has called for the exploration of a sale of the company’s $5bn-plus US business, EG America, as an alternative to an initial public offering (IPO). Issa argues this sale would help EG Group reduce its heavy debt load of over $5 billion more quickly than going public.
Background and Context
Until late 2024, EG Group had been preparing for an IPO on the New York Stock Exchange under the Cumberland Farms banner, expected in 2026 and valued around £13 billion (~$17.5 billion). Issa and his brother, former co-CEOs, stepped down from active management, but Issa continues to influence strategic decisions about the company’s future. Recently, Issa shifted his stance from supporting the IPO plan toward advocating for the sale of the U.S. division. He indicated interested buyers already exist for EG America’s 1,500+ convenience stores.
Current Status
EG Group has confirmed multiple asset sales outside the U.S., including its Italian business (1,200 sites sold for around €425 million) and its Australian operations (500 sites sold for AU$1.1 billion), as part of a broader strategy to focus on core markets and slash debt. The company has not publicly commented on Issa’s proposal or the potential U.S. sale since his statements.
Potential Impact on EG Group
A full U.S. sale could provide leverage estimated at about three times earnings, offering a faster path to deleveraging than an IPO. Selling EG America would significantly reduce EG Group’s global footprint but improve its balance sheet and financial stability. The move could alter the company’s growth strategy by concentrating resources in fewer, more profitable markets and lowering operational complexity.
Conversely, foregoing the IPO might delay access to capital markets and reduce the public valuation opportunity in a strong U.S. convenience store market.
Future Direction
The definitive decision and market reaction remain pending as EG Group has declined to comment on the proposal publicly. Zuber wants to retain control in any deal for his new venture and is open to working with private equity. He also expressed concerns about the potential impact of rising interest rates on free cash in deals with private equity.
This proposal marks a rare public intervention from Zuber and suggests a divergence of opinion with TDR Capital on the best way to exit the investment. EG was formed by the 2016 merger of Euro Garages and TDR's European Forecourt Retail Group. Zuber sold his 22.5% stake in Asda to TDR in 2021, handing the buyout group majority control.
Under the Issas' ownership, Asda has lost market share to rivals and growth plans have stalled. In the past, EG attracted scrutiny over the use of interest-free loans from the company to buy two private jets. Zuber stated that he and his brother Mohsin were advised to register the jets in their own names.
In a new venture, Zuber is planning to expand EG On The Move, which replicates the formula that made EG successful by adding modern convenience stores and outlets from brands such as Greggs and Starbucks to its forecourts. Zuber aims to expand EG On The Move to a size where it is making £500mn.
- Zuber Issa's proposal for the sale of EG America, with estimated earnings leverage of about three times, could offer a faster path to deleveraging for EG Group compared to an initial public offering (IPO).
- Selling EG America would significantly reduce EG Group's global footprint, improving its balance sheet and financial stability, but it might delay access to capital markets and potentially lower the public valuation opportunity.
- In a new venture, Zuber Issa plans to focus on expanding EG On The Move, replicating the formula that made EG successful by adding modern convenience stores and outlets from brands such as Greggs and Starbucks to its forecourts, with a goal of reaching £500mn in size.
