TDR Capital, a UK-based private equity firm, is set to become the majority stakeholder in Asda, taking control of 67.5% of the supermarket chain.
- TDR Capital acquired these shares by purchasing co-owner Zuber Issa’s 22.5% stake, complementing their previous investment alongside the Issa brothers from 2021.
- The deal, valued at £780 million, is expected to close in the third quarter of 2024, marking a significant shift in Asda’s ownership structure.
- Asda is currently conducting an international search for a new CEO, with the role vacant since 2021 after Roger Burnley’s sudden departure.
- In the fiscal year ending December 31, 2023, Asda reported a 3.4% increase in sales for its George brand, underscoring its performance in a competitive market.
TDR Capital, a renowned private equity firm in the United Kingdom, is poised to expand its influence over Asda by securing a 67.5% shareholding. This moves comes after acquiring co-owner Zuber Issa’s 22.5% stake. Initially, TDR Capital became involved with Asda in February 2021 as part of a consortium with the Issa brothers, purchasing these interests from Walmart, which retains a 10% share.
The transaction, valued at £780 million, reflects a leveraged buyout approach, envisaged to be finalised by the third quarter of 2024. This financial manoeuvre enhances TDR Capital’s strategic positioning within the retail industry, marking a significant realignment of Asda’s ownership hierarchy.
Meanwhile, Asda is actively seeking a new chief executive as the retailer continues an international executive search to permanently fill the role vacated by Roger Burnley in 2021. The absence of a CEO has been notable, and Asda’s efforts to bring in new leadership underscore its commitment to continued growth and governance.
Contributing to its robust performance, Asda’s George brand, known for its fashion and homeware offerings, recorded £1.5 billion in sales for the fiscal year ending December 31, 2023. This marks a 3.4% growth compared to the same period in 2022. The brand is focusing on expanding key segments such as footwear and tailoring, which George MD Liz Evans notes as substantial opportunities for growth.
Additionally, former co-owner Zuber Issa intends to concentrate on managing his UK forecourt sites, having shifted his focus away from Asda. This move delineates a new phase for Issa, whose involvement with Asda has been pivotal in its recent history.
These developments signify a major transition in Asda’s corporate landscape, potentially influencing its strategic direction.
