Following Kroger’s strategic plans to seek alternative plans for its convenience store business this past October, the retail giant has entered a definitive agreement with U.K.-based EG Group, a privately-held gas station and convenience store retailer. The deal—which was entered into in February and was closed on Friday of last week, according to CS News—is for $2.15 billion.
EG Group has big plans for the 762 convenience stores that currently operate in 18 states, including 66 franchise operations and 11,000 associates working at the following banners: Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop.
"This announcement represents another momentous chapter in the enterprise journey for EG Group. We now look forward to working with our exceptional U.S. management team and begin to invest in the network in the coming months," said Mohsin Issa, Founder and Co-CEO, EG Group. “We already have established relationships with many leading U.S. retail brands and consumers want to access convenient locations to fulfil multiple fuel, convenience store, and food-to-go missions and stop at those locations that provide excellent welfare to motorists."
The news source reported that the British-based company will bring a commercial approach to its newly acquired U.S.-based locations. This will begin with a few locations, as the company develops its comprehension of market dynamics and consumer perceptions, the news source explained.
The company hopes to provide a safe retail environment, well-lit sites, ample parking, free Wi-Fi, indoor seating areas, and clean bathrooms.
"We aim to invest and transform our locations into branded retail destinations and be recognized as an effective U.S. fuel, convenience store, and food-to-go retailer," said Issa. "I would like to take the opportunity to thank my local team and colleagues from the EG Group, Kroger, suppliers, and our professional advisers who have supported us throughout the whole transfer process."
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