Yahoo Finance Asda takeover: Meet the British supermarket giant’s new private equity owner
Private equity is to take control of another of Britain’s supermarket chains after one half of the billionaire Issa brothers agreed to sell his shares in Asda to TDR Capital.
The Leeds-headquartered chain will join Morrisons in being controlled by private equity after its fellow Yorkshire business was snapped up by Clayton Dubilier & Rice three years ago.
After Zubar Issa sells his shares, in a deal that is expected to complete in the third quarter of 2024, Asda will be 67.5 per cent owned by TDR Capital while Mohsin Issa will hold 22.5 per cent and a further 10 per cent will be held by former owner Walmart.
TDR Capital first got involved in Asda when it partnered with the Issa brothers in 2021 to buy the chain for £6.8bn.
But the firm has been active in the UK since being founded in London in 2002 by Manjit Dale, Stephen Robertson and Tudor Capital.
TDR Capital’s current portfolio
TDR Capital’s first involvement with the Issa brothers came in 2015 when it purchased a minority stake in Euro Garages for £1.3bn, creating EG Group.
Two years before, the firm had taken control of David Lloyd Leisure from previous owner London & Regional and Caird Capital LLP for £750m.
In November 2019, TDR Capital acquired Constellation Automotive Group, the owner of Cinch and We Buy Any Car, for £2bn.
Manchester-headquartered Arrow Global was snapped up by the firm in October 2021 for £565m.
The European fund manager had previously been listed on the London Stock Exchange.
Its portfolio also includes Stonegate Pub Group, the UK’s largest pub company which manages around 4,800 sites.
The Solihull-headquartered company was formed in 2010 by TDR Capital after it purchased 333 pubs from Mitchells & Butlers.
In July 2023, TDR Capital first invested in the UK arm of fast-food chain Popeyes and then took a controlling stake in January 2024.
A month later, the firm acquired the UK’s second largest pet retailer, Jollyes from Kester Capital.
In February 2023 the firm first invested in Vertu Motors, increasing its stake again in the November of that year.
Other companies that currently form part of TDR Capital’s portfolio include:
Aggreko
BPP Holdings
NKD Group
Buffalo Grill
Ayvens
Hurtifruten
Target Hospitality
What companies have the group previously invested in?
PizzaExpress is the most well-known company to have been sold by TDR Capital to date.
The firm first invested in the business in 2033 and excited three years later when it floated.
Other companies that TDR Capital no longer has as part of its portfolio include:
Keepmoat Homes
ICWG
Modulaire Group
Willscot Mobile Mini
Retirement Advantage
MCS Group
VPS Holdings
Lowell Group
Phoenix Group
LPR
Is TDR Capital financially stable?
According to its most recent set of accounts to be published with Companies House, TDR Capital made a pre-tax profit of £33.7m in the year to March 31, 2023, up from £26.5m.
The results also showed that its turnover increased from £59.4m to £67.5m over the same period.
Its accounts for its most recent financial year are due to be filed with Companies House by the end of 2024.
According to its website, the firm has more than €15bn (£12.6bn) in assets under management and a headcount of 85 while it has around 270,00 employees across its portfolio.
The top team behind Asda’s new owner
Managing partner Gary Lindsay was hired in June 2008 and holds the title alongside Tom Mitchell. Prior to joining TDR, he worked at Citi and Bear Stearns.
Tom Mitchell was hired in March 2007 and was TDR Capital’s chief financial officer for more than ten years before taking on his current role.
Catherine Lester, partner and chief financial officer, joined in July 2022 having been CFO at the London Metal Exchange for over eight years.
Partner Brian Magnus was hired in September 2012 having been managing director at Morgan Stanley where he was European head of Morgan Stanley Private Equity and formerly head of UK investment banking.
Partner Marc Meunier joined in January 2012 having worked at Credit Suisse as an associate in the financial sponsors leveraged finance team and as an analyst in the diversified industries team.
Jonathan Mitchell, who is also a partner, joined in May 2014. He was previously a vice president in the mergers and acquisitions team at Barclays.
Jim Moore, operating partner, was hired in October 2010. Before that he worked for seven years at US online grocer FreshDirect, where he was senior vice president overseeing human resources.
Eduardas Afanasjevas, partner and head of data science, joined the firm in November 2016. Prior to joining, he led he led the analytics capability at PwC Strategy.
Eleanor Chambers, partner and head of investor relations, joined in November 2015. Before that she worked for 13 years at PAI Partners.
Partner Hassan ElGazzar joined in July 2014 and has previously worked across a number of teams within the investment banking division at Morgan Stanley.
Rob Hattrell, partner and head of digital, was hired in September 2022. Prior to that, he was senior vice president for eBay Europe.
David Holdsworth, partner and general counsel, joined in January 2023. Before that he was a partner at global law firms Kirkland & Ellis and Linklaters.
Chief people officer Kinga Peers was hired in September 2022 having spent four years as a consultant at Russell Reynolds Associates.
Partner Jonathan Rosen joined in November 2006. Prior to that he was a partner at Hampshire Equity Partners for nine years.
Mark Stephens, who is also a partner, joined in September 2012. Had had previously worked at Morgan Stanley in London as an associate in its private equity fund.
Chief operating officer Blair Thompson was hired in April 2006 having been a partner at SJ Berwin LLP.
