TDR Capital to become majority owner of Asda

Funds managed by UK-based private equity firm TDR Capital LLP have announced that they have agreed to acquire Zuber Issa’s shares in Asda.

The transaction brings TDR Capital’s ownership of Asda to 67.5 per cent, with Mohsin Issa remaining a co-owner on 22.5 per cent and Walmart still owning 10 per cent. The deal is set to complete in the third quarter. 

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, the supermarket said 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.

“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.”

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.”

Meanwhile, Asda reported that is is undertaking ”an extensive international executive search to find a permanent chief executive. ”This is a priority for the Asda board, who are committed to taking a deliberate and thoughtful approach to hire the best possible candidate. Asda will update in due course,” the retailer said in a statement.