Blackburn's billionaire Issa brothers are leading contenders to buy out Asda in £6.5bn takeover

[Gabbar Singh]

Billionaire brothers Mohsin and Zuber Issa, from Blackburn, are reported to be leading a consortium to buy a controlling stake in the supermarket.

Sky News reports that the businessmen, who are co-owners of Euro Garages, are now the preferred bidders for the US-owned supermarket chain.

The Issa brothers are understood to be backed by a syndicate of lenders including Barclays, ING, Lloyds Banking Group and Morgan Stanley.

Asda is currently owned by American retail giant Walmart and the sale would see Asda return to majority British ownership for the first time since 1999.

Just last week it was reported that Walmart was on the verge of agreeing a deal with Apollo Global Management, a buyout firm which has been working with Rob Templeman, the former boss of Debenhams.

Another private equity firm, Lone Star Funds, had been working with former Asda executive Paul Mason to pursue a bid, but it pulled out of the auction last week.

The prospective sale of Asda comes more than two years after Walmart plotted a merger of the British chain with rival Sainsbury's, which was eventually scuppered by competition regulators.

A formal agreement could still be several weeks away, according to Sky News.

https://www.lep.co.uk/business/blac...ntenders-buy-out-asda-ps65bn-takeover-2985694

 

[MenInG]

Excellent news, hopefully this can go through and good success story for self made Asian businessmen.

 

[cricketjoshila]

Seems Gujarati origin guys are killing it around the world. A big success story for Indian origin Brits.

 

[MenInG]

Two billionaire brothers from Blackburn have won the battle to buy Asda from Walmart of the US, in a deal valuing the supermarket chain at £6.8bn.

A consortium of Zuber and Mohsin Issa and private equity firm TDR Capital will take a majority stake in Asda.

It means the grocer will return to majority UK ownership for the first time in two decades.

The Issa brothers own EG Group, which has more than 5,200 petrol stations across the UK and Europe.

A spokesperson for the Issa brothers and TDR Capital declined to comment on how they are funding the deal.

The auction process for Asda has lasted for several months. Walmart decided to sell a controlling stake in Asda after shelving plans to float the business following a failed £7.3bn merger with Sainsbury's, which was blocked on competition grounds .

Walmart bought Asda in 1999 for £6.7bn and it will retain a minority stake in the supermarket chain.

Announcing the deal, Walmart said Asda would keep its headquarters in Leeds and its chief executive, Roger Burnley, would remain in place.

Asda already has a relationship with the Issa brothers through their petrol forecourt business.

The supermarket recently announced its expansion into convenience stores and will initially trial "Asda On the Move" at three of EG Group's fuel station forecourts in the Midlands.

Mohsin and Zuber Issa said they wanted to support Asda's management to achieve long-term growth.

"We believe that our experience with EG Group, including our expertise around convenience and brand partnerships and our successful partnership with TDR Capital, can help to accelerate and execute that growth strategy," they said.

Initially called Euro Garages, the Issa brothers founded EG in 2001, expanding it from a single site in Bury, Greater Manchester.

TDR Capital now owns half of the group, with Zuber Issa controlling 25% and Mohsin Issa the remaining 25%.

https://www.bbc.co.uk/news/amp/business-54383131?__twitter_impression=true

 

[Gabbar Singh]

It’s a great story for these brothers however a little bit of digging reveals their company is heavily leveraged. They have at least £8 billion worth of debt and on some of that they are paying 6% interest. Seems to be the modern way of doing business.

Hot debt markets fuel growth of Blackburn’s petrol pump empire

''EG Group’s debt pile has more than quadrupled since the end of 2017, topping €8bn''

''Earlier this month, the company had to offer a regular interest payment of more than 6 per cent to raise €700m from European investors, while junk bond buyers in the US were able to extract a steep 8.5 per cent yield for $625m of debt.''

''the market was overly complacent about the €6.3bn stated real-estate value of the group and the ease with which these sites could be converted for alternative use.''

https://www.ft.com/content/356acc82-fb11-11e9-98fd-4d6c20050229

 

[SpiritOf1903]

Seems Gujarati origin guys are killing it around the world. A big success story for Indian origin Brits.

Defo. Boohoo, though controversial, another huge success story. Will be interesting if this increases Halal options in stores. Incredible his they've grown, effectively oil magnates.

 

[cricketjoshila]

It’s a great story for these brothers however a little bit of digging reveals their company is heavily leveraged. They have at least £8 billion worth of debt and on some of that they are paying 6% interest. Seems to be the modern way of doing business.



https://www.ft.com/content/356acc82-fb11-11e9-98fd-4d6c20050229

Everything depends on how much is their cash flow.

£8bn is massive amount of debt. Plus the interest rates indicate that their balance sheet may not be that great.

I wonder how did they finance the ASDA buy out.

 

[SpiritOf1903]

Everything depends on how much is their cash flow.

£8bn is massive amount of debt. Plus the interest rates indicate that their balance sheet may not be that great.

I wonder how did they finance the ASDA buy out.

They're half of the private equity firm headed by a manjit dale

 

[MenInG]

Two billionaire brothers from Blackburn have been made CBEs a week after clinching a £6.8bn deal to buy the Asda supermarket chain from Walmart.

Mohsin and Zuber Issa were among a number of business bosses on the Queen's Birthday Honours list.

GlaxoSmithkline chief executive Emma Walmsley was made a dame for services to the pharmaceutical industry.

The drugs firm is one of about 20 that is part of a global race to develop a coronavirus vaccine.

The billionaire Issa brothers started their business 20 years ago with one rented petrol station and grew it into a network of nearly 6,000 forecourts across 10 countries.

It was announced last week that the Issa brothers and private equity firm TDR Capital would take a majority stake in Asda.

Walmart said that, under the new owners, Asda will invest £1bn in the supermarket over the next three years.

Drugs race

A number of honours were awarded to people for their work during the coronavirus pandemic, including Ms Walmsley.

She was given a damehood for services to the pharmaceutical industry and business after leading the UK's biggest drugs manufacturer for the past three years.

GlaxoSmithkline (GSK) is part of the race to develop a coronavirus vaccine, and said last week it had started clinical trials with fellow drugs firm Sanofi.

As chief executive, Ms Walmsley has been instrumental in the company's involvement in international efforts to develop a vaccine.

Property tycoon Tony Gallagher was given a knighthood in relation to his service to "land development and the property business".

The Gallagher Estates founder is a friend of former Prime Minister David Cameron and a major donor to the Conservative party.

Andrew Mackenzie, the former chief executive officer of mining giant BHP Billiton, was made a Knight Bachelor for services to business, science, technology and to UK and Australia relations.

Clare Woodman the chief executive officer of Morgan Stanley International was given a CBE for services to finance.

Fashion entrepreneur Sir Paul Smith was also recognised on the annual list, being named as a member of the Order of the Companions of Honour.

There were also honours for a number of utilities bosses.

Richard Flint, who recently retired as Yorkshire Water's chief, Olivia Garfield, chief executive at Severn Trent, and Chris Jones, who stepped down as chief of Welsh Water last year, all become CBEs.

https://www.bbc.com/news/business-54481119

 

[Saj]

Just goes to show what can be achieved with hard work and proper planning.

And it shoes that not all Asians in Britain are living in poverty as some seem to think.

 

[TSA321]

And it shoes that not all Asians in Britain are living in poverty as some seem to think.

I don't know anyone who thinks that.

 

[MenInG]

Two billionaire brothers from Lancashire who own supermarket giant Asda have bought fast food chain Leon for £100million.

Mohsin Issa and Zuber Issa, who run the EG Group, a British-based retailer which operates petrol stations, have secured more than 70 restaurants across the UK and Europe.

The purchase comes months after the brothers acquired Asda in a separate £6billion deal.

EG Group says the Leon deal – worth £100 million according to the Financial Times – is part of “significant growth in its non-fuel and food service operations.”

Leon, which employs 700 people, was majority-owned by two private equity firms, Active Partners and Spice Private Equity, with stakes of 30% and 40% respectively.

Leon chief executive John Vincent, who co-founded the chain in 2004, described it as a “sad day” but said that he has got to know the Issa brothers over the last few years.

See which businesses are declaring themselves #BackForGood near you by entering your postcode below or visit InYourArea

He said: “They have been enthusiastic customers of Leon, going out of their way to eat here whenever they visit London.

“They are decent, hard-working business people who are committed to sustaining and further strengthening the values and culture that we have built at Leon, a business that has my dad’s name above the door.”

Mr Vincent, who founded the company with Henry Dimbleby and chef Allegra McEvedy, added: “We have tried hard, done some good things, made a healthy amount of mistakes, and built a business that quite a few people are kind enough to say that they love.”

He said he is confident that under new ownership the brand will “flourish and have even greater appeal.”

The EG Group has committed to keeping on Leon’s staff and management team.

It will also hold on to its headquarters in Copperfield Street, London, for at least 12 months.

The Issas siblings started their business EG Group, with the acquisition of a single petrol filling station in Bury, Greater Manchester.

Over 19 years they have grown the petrol forecourt firm and expanded nationally.

EG is also thought to be closing in on Caffè Nero, after buying up some of the struggling coffee chain’s debts

Last November, Caffè Nero was placed into a Company Voluntary Arrangement as it looked to get its finances in order.

The business rejected the bid from the brothers, although that remains the subject of a possible legal challenge

A statement from Caffe Nero said: "We have had a successful winter and spring trading and are generating positive cash flow and are ahead of forecast for the last five months."

https://www.liverpoolecho.co.uk/news/uk-world-news/billionaire-asda-owner-brothers-buy-20416132

 

[OMB]

Issa brother's petrol station giant EG Group acquires UK's second-largest bakery business Cooplands
Cooplands employs more than 1,600 people and was founded in 1885

Petrol stations giant EG Group, which was founded by the billionaire Issa brothers, has acquired the UK's second-largest bakery business.

CS Food Group Holdings, which is behind Cooplands, owns three bakeries that process ingredients and manufacture fresh food distributed through its supply and logistics network to about 180 stores and cafes, predominantly across the North East and Yorkshire.

Founded by Frederick and Alice Coopland in 1885, Cooplands employs more than 1,600 people.

An EG Group statement said: "The acquisition will accelerate EG Group’s growing and successful diversification into foodservice and adds highly complementary assets that will drive development opportunities in other parts of the business.

"Today’s transaction will provide a platform to diversify the Cooplands brand into the transient petrol forecourt and retail convenience store channel, alongside the bakery chain’s traditional store formats, through EG Group’s extensive UK network."

The acquisition of Cooplands as a proprietary brand follows EG Group’s acquisition of Leon in May 2021.

Blackburn-headquartered EG Group has said it plans to invest in the Cooplands brand and fresh food offer, to help ensure it continues to satisfy existing customers and attract new ones.

In a joint statement, Zuber and Mohsin Issa, founders and co-CEOs of EG Group, said: "We are very pleased to welcome Cooplands’ many talented colleagues to the EG Group family.

"Cooplands has a proven track record in the fresh bakery sector and vertical integration with EG Group will help to further drive our success in foodservice, where we continue to see strong growth opportunities in the UK and globally.

"Following the acquisition of LEON in May, Cooplands is another fantastic fresh food brand to add to EG Group’s existing portfolio of third-party foodservice brands.

"The transaction will broaden the reach of Cooplands beyond the brand’s northern heartlands and bring its much-loved food to more existing and new customers through EG Group’s unparalleled network of roadside forecourts and retail convenience stores.

"We know that Cooplands’ impressive bakery platform and our food service expertise will be a winning combination."

Belinda Youngs, CEO of Cooplands, added: "Cooplands is proud to be joining EG Group and bringing our long history of skills and expertise in the bakery industry in both manufacturing and retail to the company. We are looking forward to a great future for the Cooplands brand."

https://www.business-live.co.uk/enterprise/issa-brothers-petrol-station-giant-21753941

 

[mazkhan]

Indians especially gujaratis are leaving us pakistanis in the trail dust.

They really are successful in the west and in India

 

[Firebat]

The portfolio keeps expanding and expanding.