The billionaire brothers from Blackburn set to buy Asda have acquired a US convenience store chain for an undisclosed amount.
Petrol forecourt giant EG Group announced they have entered into a contract to buy Schrader Oil, which was established by the Schrader family in 1937 and now operates 18 convenience retail stores and fuel stations in Northern Colorado, employing 150 people.
EG Group said the deal is being funded using existing cash reserves and is not material to its balance sheet, with the transaction expected to close by the end of 2020, subject to customary regulatory approvals.
EG Group already runs 88 Loaf ‘N Jug convenience stores in Colorado, employing close to 1,500 colleagues, it said.
The acquisition will see the Schrader Oil sites rebranded to Loaf ‘N Jug.
Mohsin Issa, founder and co-chief executive of EG Group, said: “We have a firm commitment to continue growing our presence in the USA, the world’s largest convenience market.
“We are extremely pleased to have reached an agreement to acquire Schrader Oil as another strong network addition to our existing business.”
The group said the acquisition of Schrader Oil will take its network to more than 1,700 stores across the country, operating in 33 states and retailing over 2.5 billion gallons of fuel with merchandise sales of more than $3 billion on an annualized basis.
In the US, EG Group owns and operates Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf ‘N Jug, Minit Mart, Quik Stop, Tom Thumb, and Turkey Hill.
Steve Schrader, president of Schrader Oil Company said, he is “thrilled” to be “passing the baton” to EG Group.
“We believe they have the capability to take our success and continue to support our community for many years to come.
“We believe we have found the best fit for our family, our employees, and our community,” he said.
