EG Group to sell Australian arm to Ampol
The move follows its agreement to sell its Italian business, which was announced earlier this month
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EG Group, an international operator of convenience retail, foodservice and fuel stations, has agreed to sell its Australian business to Ampol.
The deal values the EG Australia business at an enterprise value of A$1.1bn (£529m), comprising A$850m (£409m) of cash proceeds and A$250m (£120m) of Ampol stock.
EG Group said the sale will mark its exit from the Australian market, with proceeds to be used to further reduce its debt.
The move follows its agreement to sell its Italian business, which was announced earlier this month.
It agreed to sell its Italian business to a consortium of local operators in a deal worth €425m (£366.9m). The sale will mark the Blackburn-based operator’s exit from Italy.
In its latest update, the group said both sales form part of its strategy to “develop its core market operations, strengthen its balance sheet and reduce leverage”.
Russ Colaco, CEO of EG Group, said: “This transaction is a significant milestone in our ongoing efforts to streamline EG Group’s global portfolio and sharpen our focus on the markets where we see the largest growth opportunities. I would like to sincerely thank the Australian leadership team and all our colleagues for their significant contributions to the business.
“We remain fully focused on executing our strategy and building a platform for further growth, with our world-class grocery and merchandise, foodservice and fuel retail proposition.”
