Esso has sold a portfolio of 48 service stations in the Midlands and East of England to Euro Garages for £50m.
Euro Garages’ has nearly doubled its estate portfolio in a year to almost 180 sites, making it one of the UK’s largest independent forecourt operators.
The firm aims to increase its portfolio to more than 200 sites during 2014 and is targeting areas where it is currently unrepresented, such as the South, South East and South West.
The Blackburn-based firm is known to have a funding agreement with Lloyds Bank Corporate Finance, supported by Handelsbanken.
The sale is part of Esso’s move to a branded wholesale business model in the UK retail market and follows the sale of packages of other forecourts last year. Euro Garages bought 45 Esso sites in the North and North Wales last January.
Euro Garages chief executive Zuber Issa said: “We are looking forward to integrating the new Esso sites alongside acquiring and developing new-to-industry sites. We will be looking at further acquisitions and establishing strategic alliances to grow our UK presence and continue to change the market perception of forecourt retailing.”
This latest deal is due to complete in Q2 2014.
Euro Garages grew turnover by 40% to £439m in the year to July 31, 2013, boosted by organic growth in non-fuel sales and contribution from the 45 Esso sites in the North West, North East, Yorkshire and North Wales. Profit (EBITDA) for the year increased 38% to £18m.
lisa.pilkington@estatesgazette.com
