Monday, June 10, 2024 11:42 AM
Private equity is set to take control of another of Britain’s supermarket chains after half of the billionaire Issa brothers agreed to sell their shares in Asda to TDR Capital.
The Leeds-based chain will join Morrisons in a private equity takeover after its Yorkshire counterpart bought Clayton Dubilier & Rice three years ago.
After Zubar Issa sells his shares, in a deal expected to be completed in the third quarter of 2024, Asda will be 67.5 percent owned by TDR Capital, while Mohsin Issa will hold 22.5 percent and the remaining 10 percent will be held by former owner of Walmart.
TDR Capital first got involved with Asda when it partnered with the Issa brothers in 2021 to buy the chain for £6.8 billion.
But the firm has been active in the UK since it was founded in London in 2002 by Manjit Dale, Stephen Robertson and Tudor Capital.
Current portfolio of TDR Capital
TDR Capital’s first involvement with the Issa brothers was in 2015 when it bought a minority stake in Euro Garages for £1.3bn to form EG Group.
Two years earlier, 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, owner of Cinch and We Buy Any Car, for £2 billion.
Manchester-based Arrow Global was acquired in October 2021 for £565m.
The European fund manager was previously listed on the London Stock Exchange.
Its portfolio also includes Stonegate Pub Group, the UK’s largest pub company, which manages around 4,800 venues.
The Solihull-based company was founded in 2010 by TDR Capital after buying 333 pubs from Mitchells & Butlers.
In July 2023, TDR Capital first invested in the UK branch of the 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 company first invested in Vertu Motors and in November of the same year it increased its stake again.
Other companies that currently form part of TDR Capital’s portfolio include:
What companies has the group previously invested in?
PizzaExpress is the best-known company that TDR Capital has sold to date.
The firm first invested in the business in 2033 and thrilled three years later when it sailed.
Other companies that TDR Capital no longer holds in its portfolio include:
Is TDR Capital financially stable?
According to the latest set of accounts published at Companies House, TDR Capital made a pre-tax profit of £33.7m in the year to 31 March 2023, up from £26.5m.
The results also showed its turnover increased from £59.4m to £67.5m over the same period.
Accounts for the latest financial year are due to be submitted to Companies House by the end of 2024.
According to its website, the firm has more than €15 billion (£12.6 billion) in assets under management and employs 85 people, with around 270,000 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 CFO for over a decade before assuming his current role.
Catherine Lester, Partner and Chief Financial Officer, joined in July 2022 as Chief Financial Officer of the London Metal Exchange after more than eight years.
Partner Brian Magnus was recruited in September 2012 as a 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 Sectors team.
Jonathan Mitchell, 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. Prior to that, he spent seven years at US online grocer FreshDirect, where he was senior vice president of human resources oversight.
Eduardas Afanasjevas, partner and head of data science, joined the firm in November 2016. Prior to joining, he led the analytics department at PwC Strategy.
Eleanor Chambers, Partner and Head of Investor Relations, joined in November 2015. She previously worked at PAI Partners for 13 years.
Partner Hassan ElGazzar joined in July 2014 and previously worked in a number of teams within Morgan Stanley’s investment banking division.
Rob Hattrell, partner and head of digital, joined in September 2022. Prior to that, he was senior vice president for eBay Europe.
David Holdsworth, Partner and General Counsel, joined in January 2023. He was previously a partner at global law firms Kirkland & Ellis and Linklaters.
People Director Kinga Peers was hired in September 2022 after spending 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, also a partner, joined in September 2012. He previously worked at Morgan Stanley in London as a partner in its private equity fund.
Chief Operating Officer Blair Thompson was hired in April 2006 as a partner at SJ Berwin LLP.