UK supermarket chain Asda announced this week that it has agreed to acquire 132 sites in the UK from The Co-operative Group (Co-op) in a transaction valued at £600 mln (€694 mln).
The purchase includes 129 established, high-quality sites with a grocery retail store of between 1,500 and 3,000 sq ft and attached petrol filling station, and three development sites. They are located nationwide and will create a new and distinct format for Asda in the convenience market.
The transaction includes a cash value of £438 mln and will be financed through a combination of existing cash resources and bank finance.
The circa 2,300 colleagues currently employed in the Co-op stores will transfer to Asda’s employment following completion and after a transition period. The stores being acquired as part of the transaction delivered net sales of £863 mln and pro forma EBITDA of £53 mln for 12 months to June 2022.
Mohsin Issa, Co-owner of Asda, said: ‘We have always been clear in our ambition to grow Asda and are hugely excited to create this new and distinct part of our business, giving us the opportunity to bring Asda value in fuel and groceries to even more customers and communities across the UK.'
He added: 'We see convenience as a significant growth opportunity for the business. This acquisition accelerates our strategy in this area and forms part of our long-term ambition to become the UK’s second largest supermarket.’
