LONDON-The Co-operative Group [“Co-op”] has agreed to sell its petrol forecourt business to Asda for an enterprise value of £600 million, its officials say.
The transaction includes 129 petrol forecourt sites, spread across the UK and represents 5 percent of Co-op’s retail estate of 2,564 stores.
With a primary focus on developing further its leading core convenience proposition, the proceeds from the sale of its relatively small non-core petrol forecourt business, will be used to; reinvest into Co-op’s leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities
It will also invest in Co-op’s pricing, store operations, technology, and logistics and support the reduction of Co-op’s net debt
Shirine Khoury-Haq, Chief Executive at the Co-op commented: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of Co-operating for a fairer world while building our core leading convenience business.”
“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition,” he added.
The transaction is due to complete in Q4 2022.
An enterprise value of approximately £600m, which will include a cash consideration of £438mln and is also inclusive of IFRS 16 lease liabilities of approximately £162mln. Final amount to be confirmed on completion. Rothschild & Co acted as financial advisors to the Co-op, with Addleshaw Goddard acting as principal legal advisors.
Co-op is one of the world’s largest consumer co-operatives with interests across food, funerals, insurance and legal services. Owned by millions of UK consumers, the Co-op operates over 2,500 food stores, over 800 funeral homes and provides products to over 5,000 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.
Employing almost 60,000 people, the Co-op has an annual turnover of over £11billion and is a recognised leader for its social goals and community-led programmes. The Co-op exists to meet members’ needs and stand up for the things they believe in.
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