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07/31/2019

Cumberland Farms acquired by U.K. firm

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A well-established player in the European convenience store market is expanding its presence in the U.S.

U.K.-based EG Group, parent company of EG America, has entered into an agreement to acquire Cumberland Farms. Based in Westborough, Mass., Cumberland Farms operates some 600 convenience stores in seven Northeast states and Florida.

The EG Group, which has sites across the U.K., France, The Netherlands, Belgium, Luxembourg and Italy, announced its first U.S. acquisition in February 2018, a $2.15 billion deal to acquire Kroger Co.’s 762 convenience stores to the company for $2.15 billion. As part of the agreement, EG Group established its North American headquarters in Cincinnati. It has made a number of smaller acquisitions since then, including the addition of 69 Certified Oil-branded convenience stores and gas stations, and 54 Fastrac locations, as well as its wholesale fuel business, to its America portfolio.

The acquisition of Cumberland Farms will take the EG Group's U.S. network to approximately 1,700 stores, operating in 30 states with merchandise sales of more than $3 billion on an annual basis. EG Group will retain the Cumberland Farms brand on all of the acquired stores.

"We very much look forward to becoming part of the EG family, as it is clear that both Cumberland Farms and EG Group share a common vision for excellence in convenience retailing and commitment to investment in our people," said Ari Haseotes, president and CEO of Cumberland Farms.

“The acquisition of Cumberland Farms is a transformative one for our U.S. business,” said Mohsin Issa, founder and co-CEO of EG Group. “It brings us greater scale and a well-established network in locations we do not currently serve that is highly complementary to our existing U.S. store footprint. We believe that the Cumberland Farms portfolio comprises some of the very best convenience stores within the USA and we are delighted they will form part of the EG family.”

Zuber Issa, founder and co-CEO, EG Group, noted that “it is rare that an asset of this quality becomes available and we are delighted to have been successful in a highly competitive process.”