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, includingnew 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