Precedent transactions

Question 1

Why have you used these precedents

Answer 1

Some of the most recent transactions in the European grocery space, particular focus on UK deals and as you can see these petrol station transactions typically trade at a similar value anyway

Question 2

Asda TDR

Answer 2

Why has it gone badly?

Issa brothers not geared and lack of retail experience, cfo came out and publicly expressed that recently.

Market share decreased 1% in one year, CEO resigned post transaction after disagreement with owners, still yet to find a replacement

Leverage has meant they’ve gone from one of the cheapest petrol prices to the highest of all grocers,

Question 3

Morrisons CD&R

Answer 3

Very poor initial performance, significant losses of c. £1.5bn one year post LBO, lost its Big 4 place to Aldi in 2022, came as a result of raising prices more than ANY OTHER UK RETAILER

Morrisons turned a corner, new chief exec, Sir Terry Leahy (former Tesco ceo) senior advisor to CD&R

Growth in 6 consecutive months, new CEO former Carrefour head

Question 4

TDR Asda refinance

Answer 4

Refinanced at around 500bps + Euribor

Question 5

TDR Asda refinance

Answer 5

Refinanced at around 500bps + Euribor