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Asda Group has announced that it has completed the acquisition of EG Group’s UK business for an enterprise value of £2.07bn. The deal, announced earlier this year and originally valued at £2.27 billion as reported by FoodBev in May, aims to accelerate the supermarket giant’s growth in convenience and foodservice. Asda said the revised price reflects adjustments agreed between the two parties as they have worked through the details of the transaction. The post synergy transaction multiple is unchanged. Asda expects to generate over £250 million of incremental EBITDA on an annualised basis post synergies within the first two years. The acquisition forms part of Asda’s strategic plan to create a value-led convenience offer by rolling out Asda Express across EG UK’s 365 predominantly freehold sites – which include modern convenience stores on petrol filling stations (PFS) and benefit from high footfall and traffic flow. Asda said its growth strategy in the convenience market is a key part of its long-term ambition to become the UK’s second-largest supermarket. The purchase of EG Group’s UK business will create a group with expected combined revenues of nearly £28 billion, serving around 21 million customers every week. The transaction builds on Asda’s acquisition of 119 convenience sites with attached PFS from the Co-op Group, which started to convert to the Asda Express fascia earlier this month, and the launch of three stand-alone Asda Express convenience sites since October 2022. It also accelerates Asda’s move into the £62 billion foodservice market, with the transfer of 462 Greggs, Burger King and Subway outlets as franchise agreements. Asda now wholly owns Leon, which it will also look to introduce to its stores. The EG and Co-op acquisitions, plus the three Asda Express stores currently open, give Asda 478 convenience stores today with a commitment to opening a further 300 stand-alone convenience stores by the end of 2026. In a statement announcing the completed transaction, Mohsin Issa, co-owner of Asda, commented: “We have worked at pace over the last 12 months to deliver a compelling convenience proposition from a standing start - as well as investing more than £120m in lowering the price and further improving the quality of our food. With the deal complete, we can focus on delivering the growth opportunities.” EG Group will continue to operate in the USA, Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium as well as 32 sites in the UK. Under the terms of the transaction, the company will also retain certain foodservice brands including Cooplands, its wholly-owned bakery business, as well as franchise businesses with the Starbucks, KFC, Sbarro, Chaiiwala and Cinnabon brands, reflected within the final purchase price.