Petrol forecourt giant EG Group has ramped up its ambitious growth plans following a series of acquisitions.
The Blackburn headquartered business, founded in 2001 by brothers Mohsin and Zuber Issa, has acquired one of the largest KFC franchise in the UK & Ireland from Belfast-headquartered, The Herbert Group.
The acquisition includes 146 KFC restaurants and one Pizza Hut store, as well as a development pipeline and a small number of non-trading sites.
Inclusive of this portfolio, EG Group now operates over 1,500 food-to-go retail concessions across ten international markets including the UK, Ireland, France, Belgium, The Netherlands, Luxembourg, Italy, Germany, US and Australia.
This acquisition also sees EG Group bolster its global employee complement by a further 4,000 staff members.
Zuber Issa, co-CEO said: “Securing The Herbert Group portfolio is well aligned to our long-term strategic growth plans and builds on our commitment to grow the EG Group’s presence in the food-to-go retail convenience segment.
“The Herbert Group portfolio is a great strategic addition and complements our expanding operations in the United Kingdom and furthermore, now allows us entry into the Irish market.”
He added: “I would also like to take the opportunity to personally thank Michael Herbert and his executive leadership team for their professional commitment, help and support during the transitionary period.
“We are committed to working closely with the KFC brand team to invest in the portfolio we are acquiring, and to open new restaurants.
“There is already a strong development pipeline for us to work towards developing.”
The KFC deal comes as EG Group announced it has entered an agreement to buy healthy food retailer, Oliver’s Real Food, an Australian stock market listed company.
EG’s 10¢ per share takeover offer for Oliver’s Real Foods values the company at $27m, a 3.5¢ premium to its closing share price of 6.5¢ on Tuesday.
Zuber Issa said: “EG delivers innovative food and convenience offers to customers internationally and we are committed to bringing market leading offers to our Australian customers. In Oliver’s we see a concept that meets a global trend towards healthy and sustainable eating.”
Mike McMenamin, EG Australia CEO added: “Oliver’s has developed a strong following in Australia, and has been very well received by our customers in trials at a number of our stores.
“This acquisition presents a great opportunity for us to enter the Australian restaurant market and the potential to enhance our convenience offer across our 500+ store network. We look forward to the Oliver’s team joining the EG Australia family.”
Jason Gunn, Oliver’s Founder, Director & CEO said, “This transaction is a huge positive for our customers, our dedicated team, our suppliers and our shareholders."
