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EG Group, founded by the Issa brothers, is discussing raising about $1bn in a US initial public offering that could come as soon as the first half of this year.
The petrol forecourt empire with its origins in Blackburn is targeting an IPO that could value the company at about $9bn. It has tapped bankers at Bank of America and Goldman Sachs to lead work on its listing, according to people familiar with the matter.
The deal’s specifics and timeline could yet shift and no final decisions have been taken, the people cautioned.
EG, whose brands include Cumberland Farms in the US, is 50 per cent owned by London-based buyout group TDR. The remainder is held between Mohsin and Zuber Issa, who co-founded the business in the north of England in 2001.
EG also operates in markets such as France and Germany, and had more than 37,000 employees, according to its latest annual report from 2024. The group generated revenues of $24.2bn that year.
The company was built up via a debt-fuelled acquisition spree during the era of low interest rates. The company reported $5.3bn of net debt in the 2024 results, but it has since sold out of some markets such as Australia and Italy, generating £530mn and €425mn from the respective deals.
EG also no longer has any UK convenience stores or petrol forecourts, after selling the bulk of them to the supermarket group Asda, a sister business also owned by TDR Capital and Mohsin Issa.
Those moves helped EG to reduce its debt load and tilt its focus towards the US ahead of a New York listing.
While an IPO would pave the way for TDR to begin exiting its investment, there have been signs of division among EG’s owners.
The group traces its roots to a single petrol station near Manchester before the Issas expanded the business, then called Euro Garages, by buying Esso and Shell forecourts. A combination with TDR’s European Forecourt Retail Group in 2016 fuelled a rapid global expansion.
In 2024, Zuber Issa abruptly cut a number of business ties with his brother including selling his stake in Asda and buying a number of UK forecourts back from EG Group to create his own new business, EG On The Move.
Zuber Issa, who retains a 25 per cent stake and a seat on the board of EG after stepping down as its co-chief executive in 2024, previously told the FT that he wanted EG to pursue a sale of its US business to reduce debt rather than list the entire business.
While EG’s preparations for an IPO stretch back more than a year, the step-up in planning now underscores an uptick of listings in the US and Europe, particularly by private equity groups seeking to sell assets.
Representatives for TDR, EG, Goldman Sachs and Bank of America declined to comment.
With additional reporting from Ashley Armstrong in London