EG Group crosses the Atlantic: pioneering move into US retail fuel market

The EG group has made a pioneering move as the first European dealer group to enter the US retail fuel market. The company has crossed the Atlantic through the acquisition of 762 service stations and convenience stores from major US retailer Kroger for around US$2.15 billion - an average valuation of US$2.83 million per site. Notably, the acquired sites exclude those fuel stations located at actual Kroger supermarkets; it is a separate network which operates under multiple brands. The acquired business generated $4 billion revenue from selling 1.2 billion gallons (4.5 billion litres) of fuel in 2016. This deal sees EG gain a retail network which far outperforms the US average throughput and revenue benchmarks per site. The company, whose business model has achieved great success in Europe, will leverage its expertise - along with Kroger's existing loyalty programme - to grow the non-fuel retail (convenience store) side of the acquired businesses to maximise overall site margins.