TDR Capital to become majority owner of Leeds-based supermarket chain Asda

Private equity firm TDR Capital is to become the majority owner of the Leeds-based supermarket chain Asda.

Funds managed by TDR Capital have agreed to acquire Zuber Issa’s shares in Asda. Mohsin Issa remains a co-owner in Asda alongside TDR Capital.

In a statement, Asda said: “This brings the ownership of Asda to 67.5 per cent by TDR Capital, 22.5 per cent by Mohsin Issa, and 10 per cent by Walmart Inc. The transaction is set to complete in Q3 (the third quarter) of 2024.

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“TDR Capital invested in Asda alongside the Issa brothers, and together they took majority ownership of the business in June 2021. Since then, together with the other shareholders, TDR 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.”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.”

TDR Capital is to become the majority owner of Asda (Photo by Chris Radburn/PA Wire)TDR Capital is to become the majority owner of Asda (Photo by Chris Radburn/PA Wire)
TDR Capital is to become the majority owner of Asda (Photo by Chris Radburn/PA Wire)

“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 six 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.”

Stuart Rose, Chairman at Asda, 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, 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.”

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Zuber Issa, co-founder and co-CEO of EG Group, said: “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 said it is undertaking an extensive international executive search to find a permanent CEO to lead the business in its next phase of growth.

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