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Yahoo
15-08-2025
- Business
- Yahoo
Fueling Up: Should EG Group shed its US c-stores if an IPO is near?
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Fueling Up is a column from C-Store Dive offering a fresh perspective on the top news and trends in the convenience store industry. He's no longer part of EG Group's c-suite, but Zuber Issa continues to put pressure on the company he co-founded over two decades ago. Before he and his brother resigned as co-CEOs, Issa told The Telegraph in December 2024 that they were planning to take EG Group public on the New York Stock exchange for about $13 billion pounds, equivalent to roughly $17.5 billion. A few months later, Issa told The Sunday Times that the 'road map is starting now' for the IPO, which would probably commence in 2026 and list EG Group under Cumberland Farms, its largest c-store banner in the U.S. Now, Issa appears to be changing his outlook. He told the Financial Times this week that he wants EG Group to sell its assets in the U.S. and that there are already parties interested in purchasing them. Selling these assets, including over 1,500 c-stores under several banners, would help EG Group relieve its over $5 billion in debt much faster than an IPO, Issa told the publication. As Issa continues to speak to the press, EG Group isn't talking. The company declined to comment on any speculatory IPO or sale of EG America to the outlets Issa has spoken with, and declined to speak when reached this week by C-Store Dive. Issa himself did not respond by press time when asked for comment by C-Store Dive. It's understandable for EG Group to keep quiet if either of these moves is in the works. But Issa's comments contradict what the company has done the past few years in growing its U.S. network. M&A efforts aside, EG America has revamped its digital ecosystem, overhauled its c-suite team and boosted its fresh food offerings amid efforts to unify its many c-store banners across the country. EG Group even said earlier this year that EG America has become its most profitable market. Which leads me to this: If EG Group is indeed mulling both options, how would selling EG America impact its potential IPO? Familiar territory In early 2023, reports surfaced that EG Group was looking to sell its assets in the U.S. in an effort to relieve over $8 billion of debt falling due in 2025. About two months later, the company entered into a $1.5 billion deal with Realty Income Corporation under which the real estate investment trust purchased over 400 c-stores in the U.S. and leased them back to EG America. Since then, EG Group has been on a selling spree both in the U.S. and overseas. It has sold over 100 locations across several states to Casey's General Stores and BreakTime Corner Market, spun off most of its c-store locations in the U.K. and Ireland to sister supermarket company Asda and offloaded 32 sites directly to Issa, who used the locations to launch a new banner, EG on the Run. The sales continued this week when EG Group agreed to sell its businesses in Australia and Italy for A$1.1 billion and 425 million euros, respectively, all of which will be used to repay debt, the company said in separate announcements. At the end of last year, EG Group said it had paid down a significant portion of its debts and grew underlying EBITDA by 10%, driven by growth across many of its business segments — notably the U.S. Issa told the Financial Times this week that a sale of EG America would leave the company with leverage of about three times its earnings, and that the sale would also help pay down its debts faster than if it were to IPO. Selling top-performing assets can be a 'very smart' decision for companies looking to repay debt or focus their attention elsewhere, corporate finance attorney Andrew Apfelberg, partner at Greenberg Glusker LLP, said in an interview. In EG Group's case, offloading its U.S. division — and not going public — could mean the company is refocusing on its home base of the U.K. 'It can be pretty smart to do a carve-out as opposed to selling the whole company,' Apfelberg said in reference to EG Group offloading EG America. 'Once you sell the whole company, you're sort of done — it's an all-or-nothing proposition.' EG Group could still go public on the New York Stock Exchange even if it sold EG America, said Edward Best, partner and co-chair of capital markets at Willkie Farr & Gallagher. But he added that having EG America under its belt would be wise if going public is still the ultimate plan, since investors already know the brand and its growth strategy. On the flip side, if EG Group sells its U.S. assets and still decides to go public, investors may wonder where its future growth is going to come from. 'Those are questions that people are going to ask, so I think it just raises some questions that they're going to have to answer,' he said. Editor's note: This story has been updated to note EG Group's sale of its Australian business. Recommended Reading How a sale of EG America could impact the c-store industry Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-08-2025
- Business
- Yahoo
Par Pacific's retail business ‘continues to shine,' CEO says
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: Par Pacific Holdings' retail business 'continues to shine' after its operating income grew by about 23% in Q2 compared to the same period last year, President and CEO Will Monteleone said during the company's earnings call on Wednesday. The company's retail segment saw its operating income reach $20.8 million in Q2 compared to $16.1 million in the second quarter of 2024, according to Par Pacific's latest earnings report. Same-store fuel and in-store revenues also increased by 1.8% and 3%, respectively, compared to the prior year, Monteleone added during the call. The growth continues strong momentum for Par Pacific's retail arm after a fiscal 2024 in which the division's operating income surged by nearly $10 million. Dive Insight: Monteleone noted back in February that strong fuel margins and lower operating costs were a major catalyst for the retail division's successful 2024. This appears to be a reoccurring trend for Par Pacific, as Monetleone credited the company's Q2 growth to higher fuel margins and lower operating costs, as well as same-store sales growth. Par Pacific's adjusted EBITDA for its retail segment also spiked during Q2, growing from $19 million this time last year to $23 million, according to its earnings report. The company's retail business includes about 120 convenience and fueling sites across Idaho, Washington and Hawaii that operate under the Hele, Nomnom and 76 banners. Monteleone emphasized on Wednesday's call that Par Pacific's strong retail cash flow 'comfortably supports our leverage profile.' Par Pacific's retail profitability coincides with the company's venture into the renewables space. In late July, Par Pacific, alongside Japanese trading and petroleum companies Mitsubishi Corp. and Eneos, agreed to establish a joint venture that will produce renewable fuels at Par Pacific's refinery in Kapolei, Hawai'i. Mitsubishi and Eneos will form Alohi Renewable Energy, LLC, which will acquire a 36.5% equity stake in the venture, while Par Pacific will retain the remaining interest and lead the project's execution and operations. Recommended Reading Fueling Up: What are the fastest growing small and mid-size c-store chains in the US?
Yahoo
08-08-2025
- Business
- Yahoo
CrossAmerica sells 60 c-stores in Q2, exits Colorado and Kansas
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: CrossAmerica Partners sold 60 convenience retail properties across several states during Q2, the company reported in its earnings statement on Thursday. The buyers included multiple 'small independent operators,' a company spokesperson said in a statement to C-Store Dive. The 60 stores are scattered across the South Central, Mountain West and Northeast regions of the U.S., and included locations in Colorado and Kansas, marking CrossAmerica's exit from those states, according to the statement and the company's spokesperson. The divestitures were part of CrossAmerica's ongoing real estate rationalization efforts, which have notably included beefing up its c-store footprint by converting dealer sites to company-owned locations over the past year. Dive Insight: Part of CrossAmerica's rationalization efforts has also included selling stores in regions the company doesn't see as core to its strategy. The 60 stores sold last quarter doubled the 30 locations CrossAmerica offloaded in all of fiscal 2024, according to last year's Q4 report, signaling that the company is doubling down on its rationalization strategy. Nifong emphasized CrossAmerica's intent on continuing this strategy during Thursday's earnings call, noting that the 60 stores sold last quarter 'were generally lower performing sites and markets that we have decided were no longer strategic for us,' he said. He noted that CrossAmerica will maintain fuel supply agreements with the majority of the sold locations. CrossAmerica's company-operated site count dropped from 372 this time last year — and 376 at the end of last quarter — to 361 at the end of Q2. This decrease was 'primarily attributable' to the series of sales made during the quarter, according to the report. The sale resulted in $64 million in proceeds and a net gain of just under $30 million, according to the earnings report. Nifong added that CrossAmerica 'has a strong pipeline of asset sales' through 2025. '[We] expect to continue to add meaningfully to the total dollar value of sites divested by the end of the year,' Nifong said. Recommended Reading CrossAmerica sees strong merchandise sales as it approaches 400 c-stores Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-08-2025
- Business
- Yahoo
3 Big Numbers: How is c-store M&A really going?
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Earlier this week, we looked back at the most impactful c-store M&A deals so far this year. Today, we're looking at the M&A landscape more broadly as businesses buckle up for the second half. Tariffs have been looming, but experts are almost evenly split on whether they will have an impact on acquisition activity, according to a report from Goldman Sachs. So where do we stand? In this week's '3 Big Numbers,' we look at how M&A is shaking out in 2025. 20% The increase in retail M&A activity year-over-year through May. Despite the uncertainty, strategic retail M&A, which includes corporate deals and add-ons, was up 20% through the first five months of the year, according to Bain & Company's midyear M&A report. And Bain thinks we'll see more deals this year. 'We expect consolidation deals will continue to define the M&A market throughout 2025,' Bain said in the report. Bain noted that some of the companies that came through the 2008 financial crisis the strongest were those that used the downturn to strengthen and expand their businesses. That means today's uncertainty could be an opportunity for well-capitalized companies. 35.7% The decline in c-store M&A year-over-year through mid-May. While retail dealmaking has grown, c-stores have been notably more cautious. In fact, convenience store and fuel distribution M&A activity decreased 35.7% year-over-year through mid-May, reaching just nine announced deals, according to a report from investment banking firm Capstone Partners. Activity has picked up a little during the summer, however. Since the start of June, notable deals have included Gill Energy buying Dutchess Terminals and its 13 retail locations, Applegreen getting the rights to remodel and run 18 travel centers in Massachusetts, Sampson-Bladen Oil Co. agreeing to acquire the 15-location Breeze Thru Markets chain and MAPCO buying 35 stores from Couche-Tard. So there's still hope that 2025 could outperform 2024. $9.1 billion The price tag on Sunoco's deal for Parkland Corp. In June, Parkland Corp's shareholders voted to accept energy company Sunoco's $9.1 billion buyout offer. Now that Alimentation Couche-Tard has withdrawn its bid for 7-Eleven parent company Seven & i, it's quite possible this will be the biggest deal of the year. It's still unclear what Sunoco is going to do with the thousands of stores it's getting in the acquisition, but the industry will surely be watching to see whether it keeps them or sparks a new round of M&A by offloading them. Who knows? If the upward trajectory in M&A continues, maybe by the end of the year it'll get unseated at the top of the 'biggest M&A' heap Recommended Reading Tracking 2025 c-store acquisitions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
Yesway appears to be in talks to sell Iowa and Kansas c-stores to MegaSaver
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Yesway appears to be pursuing a sale of its convenience stores in Iowa and Kansas to Midwest c-store retailer MegaSaver, according to employees from 10 different Yesway locations across those states. It's unclear when the deal is set to materialize, although team members from three stores said they've been asked to tell customers that their Yesway loyalty points will expire in mid-August. These same employees said that if the deal finalizes, they've been told they would become MegaSaver team members. A deal would nearly double Nebraska-based MegaSaver's c-store count and introduce the company to Kansas while significantly spreading its footprint in Iowa. C-Store Dive first reported in February that Yesway intended to sell all 30 of its convenience stores across Iowa and Kansas by the end of 2025. At the time, a company spokesperson didn't offer specifics about why Yesway was taking this direction, only noting that its Iowa and Kansas stores didn't match the company's strategy. In a statement to C-Store Dive earlier this week, Yesway's spokesperson said that the Texas-based retailer 'has not yet sold its Iowa and Kansas-based stores.' The spokesperson did not respond to several follow ups about whether a deal with MegaSaver is in the works. Kamol Samiev, MegaSaver's vice president, said over the phone that he 'can't deny or confirm' a deal being in the works for Yesway's Iowa and Kansas c-stores. Meanwhile, Lu Qian, a corporate controller on MegaSaver's accounting team, said that she 'cannot share information at this time' regarding a potential deal. Back in February, Yesway's spokesperson said that after selling its stores in Iowa and Kansas, Yesway would reinvest the proceeds into c-stores 'that enable us to provide a better customer experience.' That may refer to Yesway's stores in the Southwest, where it's invested heavily in recent years and operates the bulk of its locations under the Allsup's banner. Founded in 2002, MegaSaver operates most of its stores around Omaha, Nebraska. Acquiring Yesway's roughly 30 stores in Iowa and Kansas would grow the company's network from about 42 stores in three states to over 70 locations across four states. Besides Omaha, the retailer has two locations in Iowa near the border of Nebraska and two others in the Fort Lauderdale and Coral Gables areas of Florida. Recommended Reading Yesway to sell all of its c-stores in Iowa and Kansas
