EG Group Founders and Co-CEOs Moshin and Zuber Issa, and private-equity firm TDR Capital, will acquire Asda, Walmart’s wholly owned U.K. retail business, in a deal valuing the supermarket chain at $8.8 billion.
Walmart bought Asda in 1999 and will retain a minority stake in the chain. Walmart said Asda will keep its headquarters in Leeds, U.K., and its chief executive, Roger Burnley, would remain in place.
Mohsin and Zuber Issa said they want to support Asda’s management to achieve long-term growth.
“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,” they said. “Asda’s performance through the COVID-19 pandemic has demonstrated the fundamental strength and resilience of the business, and we are excited to support Roger and his 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.”
The transaction is subject to regulatory approvals, and the companies said they expected to complete the transaction in the first half of 2021.
“Asda is a strong and well-managed business with one of the leading brands in U.K. retail,” said Gary Lindsay of TDR Capital. “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 Roger Burnley and the management team at Asda, to build on the business’s inherent strengths and drive long-term sustainable growth.”
Founded in 2001 by the Issa family, U.K.-based EG Group is a convenience operator who has established partnerships with global brands such as ESSO, BP, Shell, Carrefour, Louis Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs and Subway.
EG Group entered the U.S. market through the initial acquisition of 763 Kroger c-stores in April of 2018. EG Group has made a significant commitment to delivering a modern consumer retail offer creating a destination to satisfy multiple consumer missions. EG Group now operates nearly 5,400 stores, in 9 countries with over 35,000 associates.