MORE FOOD FOR THOUGHT
There seems to be just no stopping billionaire brothers Mohsin and Zuber Issa. Their Blackburn-based EG Group marches on and in its latest high-profile deal it has acquired the Leon restaurant chain.
The deal, reported to be worth up to £100m, is part of EG’s strategy to expand its non-fuel portfolio, which before this acquisition included more than 700 foodservice outlets in the UK and Ireland.
Leon’s network consists of 42 company-owned restaurants operated on leasehold locations, with a particularly strong presence in London, and 29 franchised sites at key strategic transport hubs, including airports and train stations across the UK and five other European markets.
The fresh fast food restaurant chain was founded by John Vincent, Henry Dimbleby and chef Allegra McEvedy in 2004, and has positioned itself as a pioneer in accessible healthy food which is also kind to the planet.
EG says it intends to invest in the brand, broaden the current foodservice offer and open 20 new sites a year from 2022. Leon’s non-
restaurant products will also be made available at EG’s convenience retail locations.
In a statement announcing the deal the Issa brothers said: “Leon is a fantastic brand that we have long admired.
“As established entrepreneurs in the foodservice retail market ourselves, we have a huge admiration for the business that John and the Leon team have built over the years, and firmly believe that their culture and values closely align with our own.”
Leon is a fantastic
brand that we have long admired
This is the latest in a long line of deals that has seen the petrol forecourt operator grow globally.
The brothers and private equity business TDR Capital have used debt-funded acquisitions to expand the business across Europe, Australia and the USA.
From one forecourt in Bury almost two decades ago the Lancashire brothers have built EG Group into a global convenience retailer with more than 6,000 sites in 10 countries.
Its year-end figures for 2020, boosted by acquisitions, showed an increase in EBITDA of 48 per cent, up beyond £900m. For the year, revenues were £14.7bn.
In December the group announced the acquisition of a network of 285 petrol station forecourts in southern Germany from OMV Deutschland GmbH for €485m.
Lord Stuart Rose, who has held influential senior roles at Argos, Marks and Spencer and Ocado, was appointed as non-executive chairman in January this year.
Food is an important part of its offering. Last year it acquired the largest KFC franchise operator in the UK. Subway and Greggs outlets can also be found at its petrol station sites.
The brothers and TDR have also sealed a separate transaction, which does not involve the EG Group, to buy leading UK supermarket chain Asda in a £6.8bn deal.
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