Co-op sells petrol forecourt estate to Asda for £600 million – Retail News – A1 Retail Magazine
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.
*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.
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