TDR-backed Asda buys 132 convenience stores and petrol filling stations from The Co-op

The deal has a total value of approximately £600m and is part of Asda’s plan to become the second biggest supermarket chain in the UK.

  • The deal includes 129 established sites and three development sites
  • The acquired stores delivered net sales of £863m and pro-forma EBITDA of £53m for the year to June 
  • The 2,300 employees in the Co-op stores will transfer to Asda

TDR-backed UK supermarket chain Asda announced on Wednesday that it has agreed to acquire 132 sites from rival The Co-operative Group for around £600 million.

The deal includes 129 established sites with grocery store attached petrol station and three development sites. The established stores delivered net sales of £863 million and pro forma EBITDA of £53 million for the 12 months to June.

The deal size of £600 million is inclusive of IFRS16 lease liabilities of approximately £162 million with the final amount to be confirmed upon completion.

“We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK,” said Mohsin Issa, co-owner of Asda alongside TDR Capital. “We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket.”

Asda is headquartered in Leeds and The Co-op is based in Manchester. The 2,300 employees at the Co-op stores will transfer to Asda.

TDR Capital is a London-headquartered private equity firm with approximately €13 billion in assets under management. It looks to acquire majority stakes in European companies with potential for robust growth and resilience through economic cycles.

Mohsin Issa is a British-Indian billionaire.