The private equity firm now owns a 67.5% stake in Asda after purchasing the shares of Zuber Issa for an undisclosed fee.
Mohsin Issa retains a 22.5% stake in the business, while Walmart owns 10%. The transaction is expected to be fully completed by Q3 of this year.
TDR invested in Asda alongside the Issa brothers and together they took majority ownership of the business in June 2021.
Gary Lindsay and Tom Mitchell, managing partners of TDR, said that business has made “significant progress” in the past three years as part of wider transformation project.
“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward,” they added.
“We have added a scale convenience business, grown Asda’s store footprint from 623 to 1,200 stores and food-to-go sites, and launched a hugely successful loyalty app, which now has six million active customers, accounting for around half of total sales.”
Meanwhile, Zuber Issa said he would be turning his attention towards managing the EG UK forecourt sites that he retains a stake in as well as focusing on his charitable endeavours.
He continued: “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity. Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.”
Asda chair Stuart Rose believes that the increased investment by TDR is a sign of the firm’s commitment to the retailer.
“Asda’s heritage is in delivering great value for customers on a daily basis across its entire proposition from groceries to fashion and food-to-go – and the board has never been more committed to deliver on this promise,” he said.
“The board and shareholders continue to put in place the building blocks to position Asda for long-term success and that is good news for colleagues, customers, suppliers and other business partners.”
Mohsin Issa concluded: "I also want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co-investments, family office philanthropy and Issa Foundation projects.”
In other news, a team of students from the University of Surrey have been announced as the winners of Ecotrophelia UK.
