A FORECOURT giant started by two Blackburn brothers is set to double its presence across the UK after securing a ‘major deal’.

Euro Garages has agreed to take over 172 new sites bringing the business’s total number of service stations up to 352.

The deal will see the company, set up by BMES in 2001, purchase 104 Esso sites in the South East and 68 Shell sites.

MORE TOP STORIES:

Last year the firm also signed a deal to take over a further 48 other Esso sites to add to its growing empire.

The latest move has been welcomed by business leaders in East Lancashire and Blackburn MP Kate Hollern who said: “This is great news for Blackburn and a credit to the Issa brothers whose Euro Garage business goes from strength to strength.

“It’s fantastic that a local company continues to grow and I congratulate Euro Garages on winning this new contract.”

The company, which employs around 2,000 staff, is one of the country’s largest independent forecourt operators.

The funding for the latest deal has been provided by a syndicate led by Lloyds Bank Commercial Banking.

Seven banks came together to make up the deal, Handelsbanken, Barclays, Allied Irish Bank (AIB) and Pricoa Capital Group, and newcomers HSBC and RBS.

Lloyds Bank Commercial Banking’s Manchester-based Mid Markets team has supplied revolving credit facilities and term loans, along with one-third of a two-year term loan bridge facility.

As well as enhancing its geographical spread, the business, which is based at Beehive Trading Park in Haslingden Road, Blackburn, is also set to invest in its existing and newly acquired sites with refurbishments and improvements.

During the financial year 2013-2014 the business reported revenues of £646 million and holds a ‘preferred roadside partner’ agreement with Starbucks in the UK to operate its drive-through sites.

It also has partnerships with Subway, Greggs and Burger King to offer forecourt retail space.

Mohsin Issa, managing director, began the business 14 years ago with his brother after they bought a petrol station in Bury.

He said: “Our new financial arrangement marks a milestone moment for Euro Garages, as we almost double the breadth of our portfolio and extend our banking partners.

“Thanks to a number of key acquisitions across the UK in recent years, we have gained extensive experience in integrating new sites and are looking forward to transferring these new locations into the existing Euro Garages portfolio.

“With the support of Lloyds Bank and our other banking partners, we are set to become the second largest independent forecourt retailer in the UK, bringing our best-in-class convenience offer and brand partnerships to more customers across the UK while they fill up at the pump.”

Mike Damms, the chairman of the East Lancashire Chamber of Commerce, said: “They are an inspirational company and they are clearly making a lot of progress.

“They are committed to training their staff and are a high-growth company.

“It’s tremendous to have a company of this stature in East Lancashire.”

Tony Duckworth, president of the Blackburn with Darwen Chamber of Trade, said: “I have met the owners of the company and I’m delighted that they had made a success of their venture.

“It’s a success story that we need our school leavers to emulate in the future.

“Blackburn is a fantastic place to nurture a business that can expand throughout the country and worldwide.”

Cllr Mohammed Khan, the leader of Blackburn with Darwen Council, said: “It’s wonderful that a Blackburn business has been able to secure such a large deal.

“I would like to congratulate them and I hoe that it means that they will bring more jobs to the town.”

Paul Foster, relationship director at Lloyds Bank Commercial Banking, said: “We have worked closely with Euro Garages for almost a decade, and leading the charge in this new funding deal reaffirms our commitment to their future success.”