International law firm Addleshaw Goddard (AG) has advised Co-operative Group ("Co-op") on its sale of its petrol forecourt business to Asda for £600m*.
The sale will see Co-op dispose of 129 of its petrol forecourt sites throughout the UK, along with their associated retail outlets, representing 5% of the group's retail estate of 2,564 stores.
With a primary focus on further developing its leading core convenience proposition, proceeds from the sale will be used to:
- reinvest in 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; and
- support the reduction of Co-op’s net debt.
The sale is expected to complete in the final three months of the year.
Addleshaw Goddard advised Co-operative Group on all legal elements of the transaction, including M&A, tax, restructuring, real estate, employment and competition. The AG team was comprised of over 75 staff and led by corporate partner Andrew Green.
The law firm has a long-standing partnership with the Co-operative Group, providing full-service advice to its various businesses, including food retail, funeral services and general insurance.
Andrew Green, corporate partner at Addleshaw Goddard, said:
"This is a significant transaction representing two of the UK's most recognisable retail brands. The sale will help Co-op further in invest in its core convenience business, building out its wholesale, franchise and e-commerce operations throughout the UK.
"It was a pleasure to again work with the Co-operative Group and help to further the brand's values-driven approach to business."
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.