Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Tesco PLC    TSCO   GB0008847096

TESCO PLC (TSCO)

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Tesco PLC : Tesco sells Fresh & Easy to Yucaipa

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/10/2013 | 07:42pm CET

10 September, 2013

Tesco sells Fresh & Easy to Yucaipa

Tesco today announces that following its strategic review in the United States, it has agreed a sale of the substantive part of Fresh & Easy's operating business to YFE Holdings Inc., an affiliate of Yucaipa Companies LLC ("Yucaipa").

As part of an orderly restructuring process, Yucaipa will acquire more than 150 stores as well as Fresh & Easy's Riverside distribution and production facilities. More than 4,000 employees will also transfer to the new business. As part of the deal, Tesco will loan the new business c. £80m, secured against the Riverside Campus facility.

Those stores not included in the transaction will be closed over the coming weeks. The total cash outflow relating to the closure of these stores, other expenses and the loan is expected to be no more than £150m. The sale to Yucaipa, which is subject to the necessary legal and regulatory approvals, is expected to complete within three months. Following the completion of the full sale and disposal process, there will be no ongoing financial exposure for Tesco.

The sale is in line with Tesco's focus on the disciplined allocation of capital to those markets with significant growth potential and the opportunity to deliver strong returns.

Philip Clarke, CEO of Tesco, said:

"The decision we are announcing today represents the best outcome for Tesco shareholders and Fresh & Easy's stakeholders. It offers us an orderly and efficient exit from the US market, while protecting the jobs of more than 4,000 colleagues at Fresh & Easy."

Contacts

Investor Relations: Chris Griffith 01992 644 800

Media: Tom Hoskin 01992 644 645 or Brunswick 0207 404 5959

Notes to editors

  1. Fresh & Easy opened its first stores in November 2007 and has 200 neighbourhood markets in California, Nevada and Arizona. The company employs more than 5,000 people, including 1,300 at its distribution and manufacturing facilities in Riverside.
  2. The Yucaipa Companies LLC is a premier investment firm that has established a record of fostering economic value through the growth and responsible development of companies. Founded in 1986 by Ron Burkle, the firm has completed mergers and acquisitions valued at more than $30 billion. As an investor, Yucaipa works with management to strategically reposition businesses and implement operational improvements, resulting in value creation for investors.
  3. Consideration received will include the issuance of warrants which will be retained and, subject to exercise criteria, could be exchanged for equity to a maximum of 32.5% of YFE Holdings Inc.
  4. The stores, Riverside Campus and other assets subject to the transaction had a gross asset value of £229.3m as at 23 February 2013 and generated net losses before tax of £(163.4)m during the financial year ended 23 February 2013.

For more information please contact the Tesco Press Office on
01992 644645
We are a team of over 530,000 people in 12 markets dedicated to bringing the best value, choice and service to our millions of customers each week. Our core purpose is 'we make what matters better, together'.

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TESCO PLC
12/07 TESCO : Bank confirms online account breach, theft of funds
12/05 No longer the bad guy, Tesco set to reassert UK dominance
11/29 TESCO : Food waste becomes foodie feast with ChicP hummus
11/28 TESCO : £24 million bag charge fund made available to thousands more community g..
11/24DJWAL MART STORES : Black Friday Sales -- Europe Style
11/22 TESCO : Securing future supplier success with Tesco's Africa Community Fund
11/21 Black Friday expected to be a record-breaking online affair
11/21 TESCO : Eyes Plan To Build Flats Over Superstores - Telegraph
11/17 Tesco tells big suppliers - Don't raise prices to prop up results
11/17 TESCO : To Deliver Biggest Ever Black Friday Event Over 11 Days In 2016
More news
Sector news : Food Retail & Distribution - NEC
12/08DJToday's Top Supply Chain and Logistics News From WSJ
12/08 Ocado says new high-tech centre boosts chances of international deal
12/08DJCostco Same-Store Sales Rise After String of Declines -- Update
12/08 Retailer Wal-Mart de Mexico to invest $1.3 billion in Mexico
12/07DJCostco Same-Store Sales Rise After String of Declines
More sector news : Food Retail & Distribution - NEC
News from SeekingAlpha
10/25 The Cost Of Marmite, And Brexit's Quiet Fear Gauge
10/19 Which Food Companies Should I Consider To Buy?
10/14 WALL STREET BREAKFAST : Big Bank Earnings On Tap
10/13 Unilever and Tesco work out pricing dispute
10/13 Unilever and Tesco in scrap over higher prices in U.K.
Advertisement
Financials ( GBP)
Sales 2017 55 410 M
EBIT 2017 1 234 M
Net income 2017 468 M
Debt 2017 4 038 M
Yield 2017 0,12%
P/E ratio 2017 38,65
P/E ratio 2018 22,77
EV / Sales 2017 0,39x
EV / Sales 2018 0,38x
Capitalization 17 735 M
More Financials
Chart TESCO PLC
Duration : Period :
Tesco PLC Technical Analysis Chart | TSCO | GB0008847096 | 4-Traders
Full-screen chart
Technical analysis trends TESCO PLC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Average target price 1,98  GBP
Spread / Average Target -8,9%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
David Lewis Group Chief Executive Officer & Director
John Murray Allan Non-Executive Chairman
Alan J. H. Stewart Chief Financial Officer & Executive Director
Edmond Mesrobian Chief Technology Officer
Deanna Watson Oppenheimer Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TESCO PLC45.12%22 322
SEVEN & I HOLDINGS CO...-21.35%33 663
KROGER CO-18.26%32 281
SYSCO CORPORATION32.51%29 715
AHOLD DELHAIZE-10.18%25 275
WOOLWORTHS LIMITED-6.49%22 272
More Results