Monday 10th March, 2008
WAL-MART TO EXPLORE STRATEGIC OPTIONS FOR GAZELEY LIMITED GROUP
Wal-Mart today (10 March) announced that UBS Limited has been retained to explore strategic options, including a sale, for Gazeley Limited Group, the property development business of ASDA Group.
Gazeley is a market leader in the development of distribution warehousing in the UK, mainland Europe and China and has extended its operations to India and Mexico.
Gazeley’s customers include many of the world's leading companies, third-party logistic providers, original equipment manufacturers, retailers and their suppliers. Gazeley is also the preferred developer of distribution space for Wal-Mart International, including ASDA in the UK and Wal-Mart China.
Andy Bond, President and CEO, of ASDA said:
"Gazeley’s growth has exceeded our expectations and the business has evolved into a global brand with an impressive track record of developing distribution space in a customer friendly and environmentally responsible way.
"This is not a core business for us. For Gazeley to maintain and extend its market leadership, we believe it should be part of an organisation that specialises in property development and investment, which can better support its international growth.
"We have previously had several unsolicited approaches for Gazeley and have now decided to review our strategic options, which might include a sale of the business. In the event we do decide to sell the business, we expect to continue our long-term relationship with Gazeley as a client."
Patrick McGillycuddy, Chief Executive of Gazeley said:
"We have produced consistent profit growth over the last five years and developed leased warehouses across Europe in 2007 with an investment value of £325m.
We have a successful business model and a strong management team that will add value to any new business partner."
Notes for Editors
Enquiries:
Wal-Mart/ASDA/Gazeley Paul Kelly/Dominic Burch +44-113-241-9593
UBS Investment Bank Fergus Horrobin +44-207-568-4251
James Simpson +44-207-568-1148
Notes to Editors
Wal-Mart Stores, Inc. operates Wal-Mart discount stores, supercenters, Neighborhood Markets and Sam’s Club locations in the United States. The Company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom.
The Company's securities are listed on the New York Stock Exchange under the symbol WMT. More information about Wal-Mart can be found by visiting www.walmartstores.com. Online merchandise sales are available at www.walmart.com and www.samsclub.com.
Gazeley, a wholly owned subsidiary of Asda/Wal-Mart, was founded in 1987 in the UK and has since developed more than 50 million sq ft (4.6 million sq m) across 7 countries of sustainable distribution warehouses and industrial space for leading international companies and third-party logistics providers.
Gazeley’s vision is: ‘to be a global provider of logistics space delivered in a sustainable way’. Gazeley is operational in the UK, France, Belgium, Spain, Germany, Italy, China, Mexico and India and has plans to expand further into other BRIC's (Brazil, Russia, ) economies.
Gazeley launched its sustainable design concept in October 2004, following two years of research ,which was shared with customers and competitors and is now embedded in all its sustainable warehouses throughout the world.
A suite of key environmental measures are provided to the occupier as standard reflecting Gazeley’s cost effective procurement and long-term commitment to sustainable development. For further information please visit www.gazeley.com
ASDA has 352 stores and employs nearly 165,000 colleagues. ASDA can trace its roots back to two Yorkshire brothers, Peter and Fred Asquith, and a group of Yorkshire farmers who formed Hindell's Dairies in the 1920s. In 1965, Asquith and Dairies joined forces for the birth of ASDA.
In June 1999, ASDA was acquired by Wal-Mart Stores Inc, and in recent years, has grown to become Britain’s second largest supermarket. In June 2007, ASDA was named Britain’s Best Value Retailer for the tenth consecutive year in the annual Grocer 33 awards, compiled and presented by Britain’s top supermarket trade publication.
ADSA is also the only British supermarket to be featured in 'Britain's Top Employers 2007' and, in September 2007, ASDA was recognised as the "Most Environmentally Friendly Retailer" at the 'People in Retail Awards' and the "Multiple Environmental Retailer of the Year" at the 'Retail Industry Awards.'
UBS Limited is acting as financial advisor to Wal-Mart and no one else in connection with the sale of Gazeley Holdings and will not be responsible to anyone other than Wal-Mart for providing the protections afforded to clients of UBS Limited or for providing advice in relation to the sale of Gazeley Holdings or for any other matters referred to in this announcement.
Apart from the responsibilities and liabilities, if any, which may be imposed on UBS Limited by FSMA or the regulatory regime established there under and which can not be lawfully excluded, UBS Limited accepts no responsibility whatsoever for the contents of this announcement or for any other statement made or purported to be made by it, or on its behalf, in connection with the sale of Gazeley Holdings.
UBS Limited accordingly disclaims all and any liability whether arising in tort, contract or otherwise (save as referred to above) which it might otherwise have in respect of such announcement or statement.
