TDR Capital and EG Group founders complete the acquisition of ASDA

16 Feb 2021

We are pleased to announce that alongside our co-shareholders in EG Group, Mohsin and Zuber Issa, Funds managed by TDR Capital have acquired Asda from Walmart. Walmart is retaining a minority position in the business.

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 an estate of over 600 stores (excluding petrol stations), with significant real estate asset backing.

We believe that Asda presents a compelling investment with a highly cash generative business model and a number of growth opportunities going forward, particularly through the partnership with EG Group developing the convenience retail and food-to-go proposition.

Judith McKenna, President and Chief Executive Officer of Walmart International said:

“We believe this deal creates the right ownership structure for Asda, building on its 71 year-heritage, whilst bringing a new entrepreneurial flair. I’m delighted that Walmart will retain a significant financial stake 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.”

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 customer-centric philosophy, focus on operational excellence and commitment to the communities in which it operates are the same values that we have built EG Group on. We are excited to support the management team as they continue to reposition the business to drive long-term growth. We believe that our experience with EG Group, including our expertise around convenience and brand partnerships and our successful partnership with TDR Capital, can help to accelerate and execute that growth strategy. After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK.”

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. We look forward to supporting them and the management team at Asda, to build on the business’s inherent strengths and drive long-term sustainable growth.”

Learn more about our investment in ASDA.

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