EG Group and TDR capital acquire Asda

EG Group and TDR capital acquire Asda

Asda has been acquired by EG Group, a global convenience and forecourts retailer and investment funds managed by TDR Capital LLP, for an enterprise value of £6.8 billion.

The Issa brothers, founders and co-CEOs of EG Group, and TDR Capital are acquiring a majority ownership stake in Asda. Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the Board.

Asda will remain headquartered in Leeds and the business will continue to be led by Roger Burnley who will form part of Asda’s Board alongside representatives appointed by the Issa brothers, TDR Capital and Walmart.

Judith McKenna, president and chief executive officer of Walmart International, said: We are delighted to be able to announce this deal, which we believe creates the right ownership structure for Asda, building on its 71 year-heritage, whilst bringing a new entrepreneurial flair, not only to Asda, but also to UK retailing.

“I’m delighted that Walmart will retain a significant financial stake, a board seat, and will continue as a strategic partner. Asda has been a powerhouse of innovation for the rest of the Walmart world, and we look forward to continuing to learn from them in the future. This important combination will continue to keep customers and colleagues at Asda’s heart, which is important to us all.”

Under its new owners, the business says it will aim to do a range of things, including maintaining competitive pay levels for Asda colleagues, invest more than £1 billion in the next three years and continue to offer low prices across its stores.

Mohsin and Zuber Issa said: “We are very proud to be investing in Asda, an iconic British business that we have admired for many years. Asda’s performance through the Covid-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his team as they continue to reposition the business to drive long-term growth.

Gary Lindsay at TDR Capital, said: “Asda is a strong and well-managed business with one of the leading brands in UK retail. We are proud to be investing alongside Mohsin and Zuber, who have built EG Group into a global convenience retailer and will now bring that experience to bear at Asda.

The transaction is subject to regulatory approvals and is expected to complete in H1 2021.

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