Private equity firm TDR Capital has become the majority owner of Asda after it acquired Zuber Issa’s share in the business.
The transaction is set to complete in the third quarter of 2024 and Mohsin Issa will remain as a co-owner of the business, alongside TDR Capital.
When the transaction is completed, TDR Capital will own 67.5% of Asda, with Mohsin Issa owning 22.5% of the grocer and former majority owner Walmart holding a 10% stake.
The private equity firm bought the business alongside the two Issa brothers in June 2021.
The firm said, alongside the Issa brothers, it has “supported Asda to accelerate its strategy, with a particular focus on delivering low prices to customers and expanding into the fast-growing convenience retail segment”.
Asda continues to look for a new chief executive.
TDR Capital managing partners Gary Lindsay and Tom Mitchell said: “We first invested in Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.”
“By combining our investment and sector expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda. We have added a scale convenience business, grown Asda’s store footprint from 623 to 1,200 stores and food-to-go sites, and launched a hugely successful loyalty app, which now has 6 million active customers, accounting for around half of total sales.
“We remain focused on investing in Asda’s stores and online, as well as its colleagues through the highest pay in the traditional supermarket sector, to drive sustainable, long-term growth.”
“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.”
Asda chair Lord Stuart Rose said: “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 added: “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.”
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