Private equity firm TDR takes control of Asda after Zuber Issa sells stake | TheBusinessDesk.com
Summary
With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours.Asda said it is undertaking an extensive international executive search to find a permanent CEO to lead the business in its next phase of growth.Meanwhile, global forecourts and food service operator, EG Group confirmed it has agreed to sell its remaining UK forecourt business and certain standalone foodservice locations for \xa3228m to Zuber Issa.On completion Zuber will step down as co-CEO of EG Group, with Mohsin Issa continuing to lead the business as sole CEO. The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business.Given our shared background in building great businesses, the board and everyone at EG understand Zubers desire to return to his entrepreneurial UK roots by acquiring the remaining UK forecourt business including new-to-industry developments and certain standalone food service concessions as well as dedicating more time to his family and our charitable activities.EG Group said it will use the proceeds from the divestment to repay debt, further strengthening its balance sheet following the significant deleveraging and refinancing activity last year.The group has also today announced the appointment of Russell Colaco as Group Chief Financial Officer. He will succeed Michael Bradley who has decided to step down to pursue other opportunities.For the 12 months to December 31, 2023, the group delivered revenues of circa $25bn and pro forma EBITDA of $1.1bn with a sustainable capital structure to support investment in future growth.Skadden, Arps, Slate and Meagher & Flom (UK), Rothschild & Co, EY and PwC supported EG Group on the transaction.Today, EG Group also released its first quarter figures, to March 31, 2024.They show underlying EBITDA rose by nine per cent to $178m after strong non-fuel performance and delivery of earnings growth initiatives, and a five per cent growth in gross profit, driven by a strong non-fuel performanceGrocery and Merchandise gross margin grew by 1.7% and gross profit increased by 7.3%, largely driven by coffee and dispensing beverages initiatives in the USA and continued focus on product mix and pricing. Management remains committed to further deleveraging to achieve 4.5x leverage in the near to medium term.The brothers said: Our US strategy provides a blueprint for the groups global initiatives to improve performance organically. The group also delivered further progress with its deleveraging programme over the quarter, supported post the period end by completing our sale of 216 KFC franchise restaurants to Yum!