ASDA : INTERVIEW - ISSA BROTHERS, EURO GARAGES GROUP - BLACKBURN ON ACQUIRING ASDA. MOHSIN & ZUBER

New British ownership will accelerate Asda’s strategy, building on the retail leader’s low-price heritage.

The Issa brothers and TDR Capital have together agreed to acquire Asda, Walmart’s wholly-owned UK business, for an enterprise value of £6.8 billion, on a debt-free and cash-free basis.

The highly attractive business has strong fundamentals and has shown impressive resilience through the Covid-19 pandemic. The brothers and TDR are excited to support the Asda management team in executing and accelerating their strategy to reposition the business and drive long-term growth.

The brother’s experience and expertise, particularly in convenience retailing and strategic brand partnerships, means they are uniquely placed to help Asda explore new opportunities for growth.

THE ISSA BROTHERS AND TDR CAPITAL TO ACQUIRE ASDA FROM WALMART

• New British ownership to accelerate Asda’s strategy, building on the retail leader’s low-price heritage
• The Issa brothers and TDR Capital to acquire Asda, with equal shareholdings; Walmart to retain an
ongoing equity investment
• The Issa brothers, together with TDR Capital, bring significant expertise in convenience retail and
brand partnerships to help Asda serve a wider base of UK shoppers
• Existing Asda management team to continue to drive the current growth strategy, with ongoing
access to Walmart’s global sourcing scale and innovation

2nd October 2020 - Walmart Inc. (“Walmart”), Asda Group Limited (“Asda”), the Issa brothers and TDR Capital announced that the Issa brothers, founders and co-CEOs of EG Group, a global convenience and forecourts retailer, headquartered in Blackburn, UK, and investment funds managed by TDR Capital LLP, a leading UK-based private equity firm, have together agreed to acquire Asda, Walmart’s wholly-owned UK business, for an enterprise value of £6.8 billion, on a debt-free and cash-free basis.
Under the new ownership structure, the Issa brothers and TDR Capital are acquiring a majority ownership stake in Asda. Walmart will retain an equity investment in the business, with an ongoing commercial relationship and a seat on the Board.
At a time of evolution in the UK food retail sector, the new owners will continue to build a strong and successful business, benefiting from fresh capital and expertise, as well as valuable links with the world’s largest retailer. The Issa brothers, backed by TDR Capital, will support and accelerate Asda’s existing strategy, which is anchored in delivering low prices and convenience to customers however they want to shop. Under the new ownership, Asda will continue to work closely with suppliers to provide best value ranges for customers in the categories that matter most to them.

The business will continue to be led by Roger Burnley who will form part of Asda’s Board alongside representatives appointed by the Issa brothers, TDR Capital and Walmart.
As well as accelerating Asda’s existing strategy, the Issa brothers will bring significant additional expertise, particularly in convenience retail and brand partnerships, drawing on their experience of building a global convenience retailer with more than 6,000 sites. They are well placed to support Asda in developing a compelling convenience retail proposition and taking it to market, and to advise on the development of strategic brand partnerships that will better enable Asda to address multiple consumer missions. Through these and other initiatives, the Asda leadership team and the company’s new ownership will be focused on building a differentiated operating model that will drive competitive outperformance and long-term growth.

Mohsin and Zuber Issa said: “We are very proud to be investing in Asda, an iconic British business that we have admired for many years. 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. 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. After a successful period as part of Walmart we are looking forward to helping Asda build a differentiated business that will continue to serve customers brilliantly in communities across the UK.”

Mohsin Issa :

Founder and co-CEO, EG Group

“This isn’t just a financial investment for us.

“We feel that Asda’s customer-centric philosophy, its focus on operational excellence and commitment to the communities in which it operates, is closely aligned to the values we have built in EG Group.”

[southville]

The two brother should look in to their Asda, Bristol, Bedminster store, that has abused the rules and Continued to impact 32 residents for 8 Years. Asda are breaching our human rights here in Bristol. We have been treated so poorly by Asda Bedminster and they continue to forced and lower our living standards. We live with intimadation and continued breaches. We hope the Brothers will look into their companies bad behaviours here in Bristol, Bedminster Bs3. We in Bristol, Bedminster Bs3 say to the two brothers, please help. They should sort out their company here and not keep kicking us. This is a history situation that continues to Impact our community. We need the brothers help to tackle their Store continued abuses of the rules.

[shazankhalid]

Looks like they're reading from a self written script. But well done to them, hard work and persistence pays off.

[johnwheat]

The truth is, their EG group is up to it's eyeballs in debt, currently over nine billion pounds. Their combined business asset values are less than what they owe, how is that a success story?

[xy]

Outstanding success in the space of 19 years. What a rag to riches story if you ever saw one!!!

[TheRichardSpearman]

Surrprising that the garage fuel retailing emopire was built up so successfully, in a market already well covered by the major oil companies. What was the USP? I have been to several of their garages, and not noticed anything

[saffy]

It's a heavily leveraged buy-out! The core fundamentals of a business, or its new investment strategies, regardless. The food matket is in decline, and consumers are constantly looking for bargains. Outlook to repay this debt is a massive haul. Words really don't justify the strategies in which the current markets are going.

[ms]

Great success and both have done great. However their responses are robot like here.

[FlintCode]

Thanks for building over our public footpaths

[zaynumar]

the wonders of capitalism ! very motivating and inspiring ! Lifting the tide for all ! The rich get richer and the poor get poorer Lol !!! hahahah Well done Gents ! From £0 to a Billion !!! IMPRESSIVE

[pkhn]

Hopefully, they will take over McDonalds next, so it can be made HALAL!

[Foralluhaterz]

Very scripted, not natural at all, they seem very nervous
Because they are not literate in that sense

[Luapnampahc]

Journalist asks questions, the brothers read off a script. Classy.

[Liverpoolboy]

Ask them about the latest, Fire and rehire?

[levithomas]

Bros can you put more to your ASDA halal range please always running out of chickens .

[fire_felix]

Zubers issas son is my friend at school he's nine

[The_Alchemist__]

They’re already planning to get rid of the sharesaver scheme, which lets employees invest in company shares an make profit, then plan on doing this as soon as they properly take over in 2021

[blank-drkx]

Sadly none of them can reply to the job advertisement I went for

[ms]

Great achievement but they sound very corporate and reading from a cue is highly probable.

[lambert]

Come on lads hows about buying Blackburn Rovers

[ÆCME]

They don't seem to be " all there "
How on earth have these simpletons got on so well?!?
There's more to this 🙄🙄