United Kingdom-based EG Group has entered into a binding agreement to acquire Cumberland Farms Inc., the Westborough, Massachusetts, c-store chain that operates about 600 convenience and fuel retail stores in eight states, mainly in the Northeast but also in Florida.
The companies did not disclose the terms of the deal but said EG Group would retain the Cumberland Farms brand.
Having had no presence in the U.S. prior to April 2018, EG Group, with the purchase of Cumberland Farms, will grow its network to nearly 1,700 stores across the country, operating in 30 states and retailing more than 2.5 billion gallons of fuel with merchandise sales of more than $3 billion on an annualized basis. The Cumberland Farms acquisition will boost EG Group into the top five U.S. c-store chains in terms of store count behind 7-Eleven, Couche-Tard/Circle K, Speedway and Casey’s General Stores, according to NACS industry data.
With U.S. headquarters in Cincinnati, Ohio, EG Group has been on an acquisition spree. In 2018, it entered the U.S. market when it bought Kroger’s c-store network of more than 700 stores, and it further expanded by acquiring more than 200 Minit-Mart c-stores from TravelCenters of America. So far this year it has inked deals for c-stores held by Fastrac Markets, Certified Oil and now Cumberland Farms. The latest deal will expand EG Group’s U.S. network to nearly 1,700 c-stores in 30 states, selling more than 2.5 billion gallons of fuel and recording more than $3 billion in merchandise sales, the company said.
Zuber Issa, founder and co-CEO of EG Group, said in a statement, “Over nearly eight decades, the Haseotes family have built Cumberland Farms into an outstanding portfolio of large, modern facilities run by a team of associates who are connected to the communities they serve. It is rare that an asset of this quality becomes available, and we are delighted to have been successful in a highly competitive process. We look forward to welcoming the talented team at Cumberland Farms into the EG family.”
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. Ari Haseotes, president and CEO, Cumberland Farms said, “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.”
Founded in 2001, EG Group operates nearly 5,400 stores, in nine countries with more than 35,000 associates. Cumberland Farms employs approximately 9,000 people.
EG Group will retain the Cumberland Farms brand on all of the acquired stores and is actively considering the addition of Cumberland Farms products in EG’s wider portfolio. The deal will mark the latest in the consolidating c-store industry. Between 2015 and 2019, half of the 20 largest chains in the industry have gone through some sort of merger or acquisition, consolidating a major portion of stores with the largest chains, according to NACS 2019 State of the Industry Summit data.