Two billionaire brothers from Lancashire who own supermarket giant Asda have bought fast food chain Leon for £100million.
Mohsin Issa and Zuber Issa, who run the EG Group, a British-based retailer which operates petrol stations, have secured more than 70 restaurants across the UK and Europe.
The purchase comes months after the brothers acquired Asda in a separate £6billion deal.
EG Group says the Leon deal – worth £100 million according to the Financial Times – is part of “significant growth in its non-fuel and food service operations.”
Leon, which employs 700 people, was majority-owned by two private equity firms, Active Partners and Spice Private Equity, with stakes of 30% and 40% respectively.
Leon chief executive John Vincent, who co-founded the chain in 2004, described it as a “sad day” but said that he has got to know the Issa brothers over the last few years.
He said: “They have been enthusiastic customers of Leon, going out of their way to eat here whenever they visit London.
“They are decent, hard-working business people who are committed to sustaining and further strengthening the values and culture that we have built at Leon, a business that has my dad’s name above the door.”
Mr Vincent, who founded the company with Henry Dimbleby and chef Allegra McEvedy, added: “We have tried hard, done some good things, made a healthy amount of mistakes, and built a business that quite a few people are kind enough to say that they love.”
He said he is confident that under new ownership the brand will “flourish and have even greater appeal.”
The EG Group has committed to keeping on Leon’s staff and management team.
It will also hold on to its headquarters in Copperfield Street, London, for at least 12 months.
The Issas siblings started their business EG Group, with the acquisition of a single petrol filling station in Bury, Greater Manchester.
Over 19 years they have grown the petrol forecourt firm and expanded nationally.
EG is also thought to be closing in on Caffè Nero, after buying up some of the struggling coffee chain’s debts
Last November, Caffè Nero was placed into a Company Voluntary Arrangement as it looked to get its finances in order.
The business rejected the bid from the brothers, although that remains the subject of a possible legal challenge
A statement from Caffe Nero said: "We have had a successful winter and spring trading and are generating positive cash flow and are ahead of forecast for the last five months."
