TDR Capital’s £6.8bn acquisition of ASDA

By Greis Gaeta, Riccardo Colombo, Federico De Rosa, Lorenzo Mirone (Bocconi University), Jonathan Fuchs and Chiara Fulvi (LSE)


Overview of the deal

Acquirer: TDR Capital, Issa brothers

Target: Asda

Total Transaction Size: £6.8 Bn

Walmart, after a lengthy auction process, has reached an agreement with the Issa brothers, billionaire owners of the oil company EG Group, and the private equity group TDR Capital for the sale of Asda, which for the first time in 21 years will return to British ownership. The terms of the agreement will guarantee the US retail giant an income of £6.8 billion.

Under the new ownership structure, the majority stake in Asda will be held by the brothers Issa and TDR Capital, while Walmart, which has owned Asda since 1999, will retain a minority stake, but the exact share has not been disclosed.

According to the agreement, Asda's headquarters will remain in Leeds; support will be provided to the existing management, there will be an ongoing business relationship and salaries for staff will be maintained at an appropriate and competitive level.

Finally, Walmart will continue to have one person on the Asda Board of Directors.

The goal of this deal is to strengthen Asda's business and its supply chain, with a particular focus on online operations, while maintaining a strong customer relationship. This will be possible thanks to the new entrepreneurial momentum that can be achieved through this agreement.

This new ownership opens an exciting new chapter in Asda’s long heritage of delivering great value for UK shoppers” - R.Burnley, Asda CEO

Company Details: Acquirer – TDR Capital

TDR Capital is a leading private equity firm with over €8 billion in committed capital. The company invests in the logistics, food retail, insurance, and construction industries. The company counts 115 investments since its inception, including a significant stake in Pizza Express.

Founded in 2002, headquartered in London, United Kingdom

Founders: Stephen Robertson, Manjit Dale

Number of employees: 60

Market Cap: no data (privately held)

EV: no data (privately held)

LTM Revenue: £76.2 million

LTM EBITDA: no data (privately held)

LTM EV/Revenue: no data (privately held)

LTM EV/EBITDA: no data (privately held)

Company Details: Target - Asda