Private equity owner of ASDA strikes £1bn deal to acquire majority stake in CorpAcq

TDR Capital, the private equity firm and co-owner of Asda, struck a deal to acquire a majority stake in CorpAcq, a UK-based company specialising in supporting small and medium-sized enterprises.

The transaction values CorpAcq at well over £1bn on an enterprise value basis, according to sources familiar with the matter. The acquisition follows discussions that began after CorpAcq’s plans to go public via a SPAC deal were abandoned last year.

This acquisition highlights TDR Capital’s continued focus on high-performing businesses with strong growth potential. The firm’s portfolio includes notable investments such as Stonegate, the UK’s largest pub group, and David Lloyd Leisure, a leader in health and fitness clubs.

By acquiring CorpAcq, TDR Capital aims to further strengthen its position in the SME market. CorpAcq’s acquisition model, which balances operational support with founder autonomy, aligns with TDR’s philosophy of fostering long-term value creation. The deal is expected to be announced within weeks and represents another strategic move by TDR in expanding its presence across diverse sectors.

In 2023, CorpAcq was set to go public through a $1.5bn SPAC merger with Churchill Capital VII, founded by Michael Klein, a prominent Wall Street financier. However, the deal was cancelled in August due to challenging IPO market conditions. TDR Capital and CorpAcq began discussions well after the SPAC transaction fell through.

Founded in 2006 by Simon Orange, CorpAcq operates from Altrincham and sponsors Sale FC Rugby’s stadium. The company has built a portfolio of more than 40 businesses, focusing on industrial products and services. CorpAcq’s buy-and-build strategy allows SME founders to retain management control while benefiting from long-term investment and operational support. The company reportedly generates around £125m in annual profit.

Source: Sky News

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