EG Group acquires British restaurants in Leon as part of growth
EG Group, the gas station operator owned by the Issa brothers, bought the UK fresh fast food chain Leon Restaurants in the last stage of its expansion.
EG Group has announced that it will invest in the Leon brand and expand its menu, with plans to open around 20 new locations per year starting in 2022. It also sees the potential to market Leon products in its convenience stores. The deal valued the restaurant chain at 100 million pounds ($ 138 million), including debt, the Financial Times reported, citing people familiar with the deal.
“EG Group continues to identify innovative partnerships and acquisitions that complement our existing consumer offering and allow us to stay at the forefront of consumer trends, particularly in the food service industry,” said Mohsin and Zuber Issa, the co-founders of the company, in a joint press release. . “Our stake in Leon’s capital aims to strengthen our own stake in the growing contemporary restaurant segment.”
The deal comes in addition to the turbocharged expansion of EG Group, which has fueled its breakneck growth in debt markets since 2017. The Issa brothers also owns the UK supermarket chain Asda Group Ltd.
EG Group continued its first private bond transaction earlier this year to raise funds for a frenzy of acquisitions. He acquired around £ 140 million in loans from a Swiss private equity firm Partners Group to finance the purchase of the Caffe Nero coffee chain, the Telegraph newspaper reported, without indicating the source of the information.
– With the help of Charles Capel
(Corrects the property of Asda in the fourth paragraph.)