Last checked at 31 Aug 2022 07:00
Co-operative Group Limited
31 August 2022
Co-op sells petrol forecourt estate to Asda for £600 million
Sale of non-core petrol forecourt business enables Co-op to focus on core convenience proposition whilst significantly deleveraging and strengthening the Group's balance sheet
The Co-operative Group ("Co-op") has agreed to sell its petrol forecourt business to Asda for an enterprise value of £600 million*.
This transaction includes 129 petrol forecourt sites, spread across the UK and represents 5% 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
· Invest in Co-op's pricing, store operations, technology, and logistics
· Support the reduction of Co-op's net debt
Shirine Khoury-Haq, Chief Executive at the Co-op comments:
"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."
The transaction is due to complete in Q4 2022.
ENDS
Co-op Media Contacts
Russ Brady, 07880 784442, russ.brady@coop.co.uk
Cat Turner, 07834 090783, catherine.turner@coop.co.uk
Notes to Editors
* An enterprise value of approximately £600m, which will include a cash consideration of £438m and is also inclusive of IFRS 16 lease liabilities of approximately £162m. 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.
About the Co-op
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.