Monday June 10, 2024 11:42 am
Private equity is set to take control of another British supermarket chain after half of the billionaire Issa brothers agreed to sell their shares in Asda to TDR Capital.
The chain with its head office in Leeds will, like Morrisons, be controlled by private equity after its fellow company in Yorkshire was picked up by Clayton Dubilier & Rice three years ago.
After Zubar Issa sells his shares, in a deal expected to close in the third quarter of 2024, Asda will be 67.5 percent owned by TDR Capital, while Mohsin Issa will own 22.5 percent and another 10 percent will be owned by former owner Walmart.
TDR Capital first became involved with Asda when it teamed up with the Issa brothers to buy the chain for £6.8 billion in 2021.
But the company has been active in Britain since it was 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 bought a minority stake in Euro Garages for £1.3 billion, creating EG Group.
Two years earlier, the company had taken control of David Lloyd Leisure from previous owner London & Regional and Caird Capital LLP for £750 million.
In November 2019, TDR Capital acquired Constellation Automotive Group, the owner of Cinch and We Buy Any Car, for £2 billion.
Arrow Global, which is headquartered in Manchester, was bought by the company in October 2021 for £565 million.
The European fund manager was previously listed on the London Stock Exchange.
The portfolio also includes Stonegate Pub Group, Britain’s largest pub company, which operates around 4,800 venues.
The Solihull-headquartered company was founded in 2010 by TDR Capital after purchasing 333 pubs from Mitchells & Butlers.
In July 2023, TDR Capital first invested in the British branch of fast food chain Popeyes and then took a controlling stake in January 2024.
A month later the company acquired Britain’s second largest pet store, Jollyes, from Kester Capital.
The company first invested in Vertu Motors in February 2023 and increased its stake again in November that year.
Other companies currently in TDR Capital’s portfolio include:
In which companies has the group previously invested?
PizzaExpress is the best-known company sold by TDR Capital to date.
The company first invested in the company in 2033 and was thrilled when it went public three years later.
Other companies that TDR Capital no longer has in its portfolio include:
Is TDR Capital financially stable?
According to the latest annual accounts to be published at Companies House, TDR Capital made pre-tax profits of £33.7 million in the year ending March 31, 2023, up from £26.5 million.
The results also showed that sales increased from £59.4 million to £67.5 million over the same period.
Accounts for the most recent financial year are due at Companies House by the end of 2024.
According to its website, the company has more than €15 billion in assets under management and a workforce of 85, while employing around 270,000 employees.
The top team behind Asda’s new ownership
Managing partner Gary Lindsay was hired in June 2008 and holds the title alongside Tom Mitchell. Before joining TDR, he worked at Citi and Bear Stearns.
Tom Mitchell was hired in March 2007 and served as Chief Financial Officer of TDR Capital for over a decade before assuming his current role.
Catherine Lester, Partner and Chief Financial Officer, joined in July 2022 after more than eight years as CFO at the London Metal Exchange.
Partner Brian Magnus was hired in September 2012 after serving as managing director at Morgan Stanley, where he was European head of Morgan Stanley Private Equity and previously head of UK investment banking.
Partner Marc Meunier joined in January 2012 after working at Credit Suisse as an associate in the leveraged financial sponsors team and as an analyst in the diversified industries team.
Jonathan Mitchell, who is also a partner, joined in May 2014. He was previously vice president of the mergers and acquisitions team at Barclays.
Jim Moore, operating partner, was hired in October 2010. Previously, he spent seven years at US online grocer FreshDirect, where he was a senior vice president overseeing human resources.
Eduardas Afanasjevas, partner and head of data science, joined the company in November 2016. Before joining PwC Strategy, he headed the analytics department.
Eleanor Chambers, partner and head of investor relations, joined in November 2015. Before that, she worked at PAI Partners for 13 years.
Partner Hassan ElGazzar joined in July 2014 and has previously worked on a number of teams within Morgan Stanley’s investment banking division.
Rob Hattrell, partner and head of digital, was hired in September 2022. Previously, he was senior vice president for eBay Europe.
David Holdsworth, partner and general counsel, joined in January 2023. Previously, he was a partner at the global law firms Kirkland & Ellis and Linklaters.
Chief People Officer Kinga Peers was hired in September 2022 after four years as a consultant at Russell Reynolds Associates.
Partner Jonathan Rosen joined in November 2006. Previously, he was a partner at Hampshire Equity Partners for nine years.
Mark Stephens, who is also a partner, joined in September 2012. Previously worked at Morgan Stanley in London as an associate in the private equity fund.
Chief operating officer Blair Thompson was hired in April 2006 after serving as a partner at SJ Berwin LLP.