Asda to introduce Leon brand into its stores
Asda says the acquisition accelerates its move into the £62bn foodservice market and alongside ownership of the Leon brand includes the transfer of 462 Greggs, Burger King and Subway outlets as franchise agreements.
The supermarket agreed to buy EG Group’s UK and Ireland operations back in May. The deal, which completed yesterday (31 October), brings together the two businesses that are both owned by the Issa brothers and British private equity firm TDR Capital.
Asda adds that the acquisition of EG Group’s UK business will create a group with expected combined revenues of nearly £28bn, serving some 21m customers every week. It will also bring together convenience, fuel, GM, grocery, foodservice and omnichannel retailing.
“We have worked at pace over the last 12 months to deliver a compelling convenience proposition from a standing start - as well as investing more than £120m in lowering the price and further improving the quality of our food,” says Mohsin Issa, co-owner of Asda.
“With the deal complete, we can focus on delivering the growth opportunities. That means lowering the price of fuel for more motorists, bringing Asda’s great value and quality to more communities, offering greater opportunities to our supplier partners and creating sustainable job opportunities for colleagues in our stores and depots.”
EG Group will continue to operate 32 sites in the UK, as well as in the US, Australia, Germany, France, Italy, the Netherlands, Luxembourg and Belgium.
Under the terms of the transaction, the company will retain certain foodservice brands including Cooplands, its wholly-owned bakery business, as well as franchise businesses with the Starbucks, KFC, Sbarro, Chaiiwala and Cinnabon brands.
