The owners of U.K. gas station operator Euro Garages Ltd. have held talks with private-equity firms about selling a stake in the business, according to three people with knowledge of the matter.
The company, which is owned by the Issa family, is exploring a sale of about half the company to fund expansion, said the people, who asked not to be identified because the discussions are private. Talks are at an early stage and may not lead to a deal, they said.
Euro Garages is working with Rothschild on options for the business, the people said. Buyout firms are interested in the company’s property assets, as well as the potential for growth through additional acquisitions, they said. The company has about 200 freehold-owned sites across the north of England and Wales, according to its website.
Brothers Mohsin and Zuber Issa founded Euro Garages in 2001 after acquiring a single gas station near Manchester, England. It now employs about 3,200 staff and has partnerships with gas and food vendors including BP Plc, Starbucks Corp. and Subway Corp. Revenue in the year through July 2014 was 646 million pounds ($1 billion) and earnings before taxes, interest, depreciation and amortization were 30 million pounds, according to its website.
Euro Garages has been advised by Rothschild on fundraisings for site acquisitions in the past two years and continues to retain its services, a spokesman for Euro Garages said, adding that the company is focused on growing its national forecourt estate. A spokesman for Rothschild didn’t respond to requests for comment.