Wal-Mart Announces the sales of Gazeley limited group
Wal-Mart announced today that it has agreed to sell Gazeley Limited Group, the property development subsidiary of ASDA, to Economic Zones World (EZW), a Dubai World company. The sale will bring to a conclusion the process begun in March 2008 when Wal-Mart retained UBS as advisors to explore strategic options for Gazeley. It is anticipated that the sale will be completed by the end of July 2008.
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. Its customers include many of the world’s leading companies, third-party logistics providers, original equipment manufacturers, retailers and their suppliers. Gazeley is also a preferred developer of distribution space for Wal-Mart International, including ASDA in the UK and Wal-Mart China.
“We believe this sale will enable us to focus more on our retail operations,” said Michael T. Duke, Vice Chairman of Wal-Mart Stores, Inc. “Since the development of distribution warehousing for third-parties is not a core business for us, Gazeley will be able to better serve its customers as part of an organization such as EZW, which is committed to providing the necessary resources and investment for further expansion.”
“I am delighted that Gazeley is to become part of a group that specialises in logistics property development and investment which will be able to support their continued international growth,” said Andy Bond, President and CEO of ASDA. “I am extremely proud of what Gazeley has achieved as part of the Wal-Mart and ASDA family and I look forward to continuing a long term relationship with them as a customer.”
“Joining EZW will accelerate Gazeleyâ€™s global expansion and enhance its offer to customers. We developed the foundations of a great business as part of ASDA-Wal-Mart and itâ€™s now time to realise our full potential as a global developer and investor of sustainable logistics space,” said Pat McGillycuddy, Chief Executive of Gazeley. “We have produced consistent profit growth over the last five years. Iâ€™m sure our successful business model and strong management team will add value to our new business partner.”