Forecourts giant EG Group has reported “significant strategic progress on deleveraging and refinancing” following the sale of its UK and Ireland division to Asda.
The retailer, which like Asda is controlled by the Issa brothers, also said it had traded in line with expectations for the first quarter.
EG said the sale of its UK and Ireland business to Asda “has delivered significant funding for the group to address upcoming maturities through material debt repayment”.
Total net debt is anticipated to fall from $9.8bn (£7.8bn) in March 2023 to $5.4bn (£4.3bn) once the tie-up is completed, bringing net leverage down from 6.3 times to 4.9 times.
EG has also launched a three-year “amend and extend” of term loans and received “good support” from its banks.
The group reported EBITDA of $228m (£182m) for the first quarter to March 31, 2023, on sales of $7.2bn (£5.7bn).
Co-founder and co-chief executive Zuber Issa said: “The sale of EG UK and Ireland to Asda is an important step for the group and provides a platform to further invest across our diverse international portfolio, where we continue to see compelling opportunities to accelerate our proven and successful strategy to roll out foodservice and grocery and merchandise to create multi-purpose convenience retail sites across our estate.
“We also have a significant near-term opportunity to deploy emerging fuels and EV chargers across the existing site network and third-party locations.
“Our future ambitions are unchanged and, following the Asda transaction, we will continue to operate across three continents and nine countries, benefiting from a strengthened balance sheet, strong cash generation and $6bn of freehold property.
“This provides continued geographic diversification, scale and an unrivalled platform from which to grow.”
No comments yet