Asda is accelerating its entry into the convenience store market with the acquisition of 132 sites from The Co-operative Group.
The purchase, worth £438million in cash, includes 129 established sites with a 1,500-3,000 square foot grocery store and attached petrol station, as well as three development sites. They are located across the country and will create a distinct new format for Asda in the convenience market, the supermarket said.
The transaction is subject to normal conditions and will be financed by a combination of existing cash resources and bank financing.
The approximately 2,300 colleagues currently employed in Co-op stores will be transferred to Asda employment. The stores acquired as part of the transaction generated net sales of £863m and pro forma EBITDA of £53m for the 12 months to June 2022, with potential for further growth in sales. ‘EBITDA when development opportunities and other synergies are taken into account, Asda said.
Mohsin Issa, co-owner of Asda, explained: “We have always been clear in our ambition to grow Asda and we are extremely excited about creating this new, distinct part of our business, giving us the opportunity to bring value to Asda in fuel and groceries. to even more customers and communities across the UK.
“We view convenience as an important growth opportunity for the business. This acquisition accelerates our strategy in this area and is part of our long-term ambition to become the second largest supermarket in the United Kingdom.
“We look forward to welcoming Co-op colleagues to this new part of our business after finalizing the transaction and formal processes in the coming months.”