Wal-Mart to explore Strategic options for Gazely 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."