UK’s private equity firm TDR Capital secures majority ownership of Asda, significantly shifting the supermarket’s ownership dynamics.
- TDR Capital’s acquisition of Zuber Issa’s 22.5% stake increases their ownership to 67.5%.
- Mohsin Issa retains his 22.5% stake in Asda as Walmart holds 10%.
- Asda is actively seeking a CEO following the departure of Roger Burnley.
- George at Asda reports a 3.4% rise in clothing and homeware sales, reaching £1.5bn in 2023.
TDR Capital, a prominent UK-based private equity firm, has maneuvered into a commanding position within Asda’s corporate structure by acquiring co-owner Zuber Issa’s 22.5% share. This strategic acquisition elevates TDR Capital’s ownership in Asda to a majority stake of 67.5%. Mohsin Issa, however, maintains his involvement with the company through his 22.5% shareholding, while Walmart, the former full owner, retains a presence with a 10% stake. This realignment in ownership marks a significant phase in Asda’s governance and strategic direction.
This transaction is expected to reach its completion in the third quarter of 2024. Notably, TDR Capital’s initial entry into Asda’s fold occurred in February 2021, when the firm, along with the Issa brothers, procured Asda from Walmart in a notable leveraged buyout. This acquisition was executed for £780 million, valuing the supermarket chain at £6.8 billion at the time.
In the meantime, Asda’s governance is experiencing a transitional phase. Since the abrupt exit of former CEO Roger Burnley in 2021, the company has embarked on an extensive international search to appoint a permanent CEO. This move illustrates Asda’s intent to solidify its leadership team to navigate the evolving retail landscape.
Concurrently, Asda’s in-house fashion and homeware brand, George, has demonstrated robust financial performance. For the fiscal year concluding on December 31, 2023, George achieved sales amounting to £1.5 billion, reflecting a 3.4% growth compared to the previous year. According to Liz Evans, Managing Director of George, categories such as footwear and tailoring exhibit promising growth potential, providing encouraging prospects for Asda’s retail strategy.
As TDR Capital consolidates its position, Zuber Issa plans a strategic shift, focusing on managing his forecourt business within the UK. This realignment enables Issa to channel his efforts toward these assets, indicating a transformative phase in his business endeavors.
TDR Capital’s acquisition positions it as a pivotal player in Asda’s future trajectory, amidst ongoing leadership restructuring.
