Petrol station empire EG Group is delaying its initial public offering until next year, opening the door to a potential sale. The company, 50% owned by TDR Capital, has received early takeover interest from infrastructure investor Stonepeak. Deliberations are in early stages with no certainty of a transaction, though EG remains focused on pursuing a listing as owners believe it could achieve a higher valuation than a sale.
Originally planning an IPO under its Cumberland Farms brand in New York this autumn to raise about $1bn at a $9bn valuation, EG now faces a challenging market for new listings. The company could still proceed if market conditions dramatically improve, but a listing is unlikely before 2027.
EG, founded 25 years ago with a single petrol station in Bury, Greater Manchester, expanded across Europe via acquisitions. It no longer operates UK sites after selling to Asda. The group is reducing its $5.8bn debt and reported Q1 revenues of nearly $4bn, up 7% year-over-year, with gross profits of $652mn, up 13%.
Source: Financial Times Companies · Summarized by HeadlinesBriefing