EG Group sells off parts of foodservice business as part of £228m deal but retains Cooplands and Starbucks franchise: EG Group is to sell its remaining 34-strong UK forecourt business and certain standalone foodservice locations for a headline consideration of £228m to co-founder Zuber Issa. EG Group will retain Cooplands, its wholly-owned bakery business, and its Starbucks franchise business. On completion of the transaction, expected to be in the second half of this year, Zuber Issa will step down as co-chief executive of EG Group, with Mohsin Issa continuing to lead the business as sole chief executive. Zuber Issa will retain his existing shareholding in the company and remain on the board as a non-executive director. TDR Capital and Mohsin’s shareholdings in EG Group also remain unchanged. Meanwhile TDR Capital has acquired Zuber Issa’s shares in Asda, taking its ownership to 67.5%. In a joint statement Mohsin and Zuber Issa said: “We have had an amazing journey together building EG Group over the last 20 years and we look forward to continuing to work closely together as fellow board members and shareholders in EG Group. The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business. We are both – and the wider board – laser-focused on our key growth opportunities. Encouragingly, following the significant progress to strengthen our balance sheet, we have a capital structure which allows us to take advantage of the opportunities ahead of us continuing to deliver our best-in-class services to our customers around the world. Given our shared background in building great businesses, the board and everyone at EG understand Zuber’s desire to return to his entrepreneurial UK roots by acquiring the remaining UK forecourt business including new to-industry developments and certain standalone foodservice concessions – as well as dedicating more time to his family and our charitable activities.” EG Group also reported revenue fell 2.7% to $5.89bn in the three months to 31 March 2024, primarily reflecting the impact of disposals in the UK and US. Underlying Ebitda rose 9% to $178m “after strong non-fuel performance and delivery of earnings growth initiatives”. Foodservice “continued to perform well” over the quarter, with gross profit up 10% year-on-year, driven by revenue growth and improved margins. Foodservice gross margin increased 3%, as the group continued to focus on pricing in line with rising underlying product costs.

Soho House lines up three new venues: Members’ club group Soho House has announced it has lined up three new openings, two in Spain and one in Italy. The company said that following its successful launch in Rome, it will open Soho House Milan, located between Piazza San Babila and Corso Indipendenza. The new venue will span six floors in a historic 1930s building, which formerly housed the Cinema Arti and an Olympic boxing gym. The venue will feature 50-plus bedrooms, a gym, rooftop terrace, pool, courtyard, and club spaces. The company is also opening Soho House Madrid, which it said will blend two historic and modern buildings into seven floors of exclusive space with a rooftop pool and gym. In Barcelona, the group’s third property in the city will be a Pool House in Avinguda Tibidabo. Focused on food and wellness, it will feature a gym, treatment rooms, an 18-metre garden pool, and two floors of club space with a bar and revolving restaurant. Earlier this month, Soho House said it had rejected a takeover offer by an unidentified party at a “substantial premium”, because it undervalued the company. The New York-listed business said it had rebuffed an offer by the unnamed party despite it being at a “substantial premium” to its current market cap, which is just over $1bn (£790m). In February, the company said an internal special committee, which had been formed last autumn, was assessing its options including a deal to go private. Soho House features in the Who’s Who of UK Hospitality, which is one of six databases exclusive to Premium Club members. The latest edition featured 865 companies. The companies, listed in alphabetical order, have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Email kai.kirkman@propelinfo.com today to sign up.