Private equity-backed petrol station company EG Group is planning a listing on the New York Stock Exchange (NYSE) in a deal that could value the business at approximately $13 billion. The move, driven by a desire to capitalize on the North American market and benchmark against listed rivals, would mark a significant shift for the UK-based company.
Private equity-backed petrol station company EG Group is planning an initial public offering ( IPO ) in New York , which could value the business at around $13 billion. The IPO is expected to take place this year or next, allowing TDR Capital to realize some of its investment made over a decade ago. Zuber Issa, who co-founded EG with his brother Mohsin but stepped away from management last year, told the Sunday Times that the IPO is on the roadmap for the group.
EG is likely to list under the name of Cumberland Farms, the American convenience store operator it acquired in 2019. The decision of two of the UK's highest-profile entrepreneurs and TDR to list their business in the US would be another blow to London's stock market, which has been struggling with a lack of new offerings and high-profile departures. The Issa brothers started with a single petrol station in Blackburn, Lancashire in 2001. They have expanded the business at an incredible pace to over 5,500 sites in nine countries, partly through debt-fueled acquisitions facilitated by their partnership with TDR. TDR and the Issas now each own approximately 50% of EG. Zuber stated that the choice of New York was influenced by the fact that, despite the business's roots in northern England, more than half of its earnings are now in the US. He also cited the presence of other listed rivals in North America, such as Canada's Alimentation Couche-Tard and Nasdaq-listed Casey's General Stores, which makes it easier for investors to compare performance. In 2022, there was speculation that Alimentation Couche-Tard and EG were in merger talks. Zuber revealed that if EG still held assets in the UK, they would have seriously considered a UK IPO. EG no longer has any UK convenience stores and petrol stations after selling the majority to the supermarket group Asda, another business owned by TDR Capital and Mohsin. Zuber remains a shareholder and non-executive director at EG, where the company reported underlying profit of $1.1 billion for the year ending December 31, 2023, on revenues of $28.3 billion. EG also reduced its net debt from approximately $10 billion in January 2023 to $5.3 billion at the end of September last year. Although the brothers only acquired Asda from Walmart in 2020, Zuber sold his stake to the private equity group last year, formalizing the split. Zuber suggested that his decision to step back from EG was driven by TDR's desire to pursue an IPO at a faster pace than he was comfortable with. Mohsin now manages EG as sole chief executive. A source close to TDR stated that TDR has supported EG since 2014 and any decisions EG makes are driven by the board and the company's choices. They emphasized that the notion this is shareholder-driven is far-fetched and that it's not about an exit, but about setting the business up for the next stage of growth
IPO EG GROUP NEW YORK STOCK MARKET CUMBERLAND FARMS
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