Asda to bring Leon brand into its supermarkets after £2b deal

Asda has taken ownership of the Leon restaurant chain as part of a £2b deal to acquire the majority of its sister company EG Group’s UK business.

The supermarket giant said it would look to introduce the Leon brand into its stores as part of a move into the foodservice market.

Some 462 Greggs, Burger King and Subway restaurants run under franchise will also transfer to Asda’s ownership as part of the sale.

The deal was announced in May and completed on 31 October.

Asda and petrol forecourt operator EG Group are both owned by the billionaire Issa brothers and private equity group TDR Capital. Proceeds of the sale will be used to help repay EG's debts and fuel its ongoing international expansion.

EG Group will continue to operate in the US, Australia, Germany, France, Italy and the Netherlands. It will retain ownership of the Cooplands bakery chain, which it bought in 2021, and franchise businesses with Starbucks, KFC, Sbarro, Chaiiwala and Cinnabon.

Asda said the deal would create a group combining foodservice, grocery, fuel and retail with expected combined revenues of nearly £28b, serving 21 million customers a week.

“This transaction is all about growth and bringing together the complementary strengths of Asda and EG UK,” said Gary Lindsay, managing partner at TDR Capital.

“We are creating an enhanced and more diverse Asda business that delivers even greater value for its customers on a daily basis in stores and online.”

EG acquired Leon, which was founded by John Vincent, Henry Dimbleby and Allegra McEvedy, in 2021 and has since opened several drive-through locations under the brand.