TDR Capital to become majority owner of Asda as Zuber Issa exits
It comes as the private equity firm has agreed to acquire Zuber Issa’s shares in the supermarket
TDR Capital is set to become the majority owner of Asda, announcing that it has agreed to acquire Zuber Issa’s shares in the supermarket. Mohsin Issa will remain a co-owner in Asda alongside TDR Capital, and the ownership of Asda is now 67.5% by TDR Capital, 22.5% by Mohsin Issa, and 10% by Walmart Inc.
The transaction is set to complete in Q3 2024.
TDR Capital first invested in Asda alongside the Issa brothers in June 2021, when they together took majority ownership of the business.
Since then, TDR said it has made “significant progress” in helping transform Asda. This includes adding a scale convenience business, growing Asda’s store footprint from 623 to 1,200 stores and food-to-go sites, and launching a “hugely successful” loyalty app.
It added that it will remain focused on investing in Asda’s stores and online, as well as its employees, to “drive sustainable, long-term growth”.
Gary Lindsay and Tom Mitchell, managing partners of TDR Capital, said: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.
“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.”
Stuart Rose, chairman at Asda, added: “On behalf of the board, I welcome TDR’s increased investment in Asda – which is a clear sign of its commitment to the business. Asda’s heritage is in delivering great value for customers on a daily basis across its entire proposition from groceries to fashion and food-to-go – and the board has never been more committed to deliver on this promise.
“The board and shareholders continue to put in place the building blocks to position Asda for long-term success and that is good news for colleagues, customers, suppliers and other business partners.”
Mohsin Issa, co-owner of Asda, said: “Today’s announcement further underlines my own and TDR’s confidence both in Asda and the UK consumer market. As a shareholder group, we are excited about the growth journey we are on. Asda is an iconic British brand and we are committed to setting it up for long-term success and delivering great value for customers across the UK.
“To that end, I am incredibly proud of the investments we have already made in transforming the Asda business, including the launch of the new Asda Express convenience format, the Asda Rewards customer loyalty scheme and the £800m investment in a best in class IT infrastructure to bring new data and insight capabilities. Above all, I am proud and grateful for the everyday commitment and loyalty of our Asda colleagues and their dedication to our customers. I also want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.”
Zuber Issa, co-founder and co-CEO of EG Group, concluded: “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity. Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.
“With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours. I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
Asda noted it is undertaking an “extensive” international executive search to find a permanent CEO to lead the business in its next phase of growth.
