Description

ASDA is the third-largest grocery retailer in the UK with a c. 12% market share and an omni-channel, multi format food and non-food offer. It is the second-largest grocery retailer in the North of England, Scotland and Wales, and has the second-largest online grocery platform in the UK. The company operates a significant store estate across over 600 sites in the UK, with its core focus being the operation of edge-of-town superstores with an average surface area of 4,200 square metres. The food and non-food offer are focused on everyday affordable pricing, targeting a broad customer demographic.

ASDA operates in the large and historically stable UK grocery retail market that is underpinned by favourable macroeconomic factors including GDP, population, consumer confidence and household expenditure.

Transaction

Following the successful partnership at EG Group, TDR Capital has acquired ASDA jointly with the Issa Brothers (co-shareholders in EG Group). Whilst EG Group and ASDA will be managed separately, we believe that there are a number of value creation opportunities unlocked by co-owning both assets, including benefits to ASDA from EG’s expertise in convenience retail and third-party brand partnerships to drive increased sales across the site portfolio.

ASDA was acquired from US retailer Walmart, who remain invested in the business.

The ASDA transaction completed on 16th February 2021. We await clearance from the UK Competition & Markets Authority, expected in Q2 2021, to commence implementation of our value creation strategy.