Asda’s private equity fund has reached an agreement to acquire a majority stake in a group specializing in supporting British SMEs.
Sky News has learned that TDR Capital has agreed to acquire a majority stake in CorpAcq, less than six months after the so-called “corporate compounder” aborted a US listing deal.
City sources said this weekend that CorpAcq, which makes an annual profit of around £125m, was valued at well over £1bn based on enterprise value under of the agreement with TDR.
Founded in 2006, CorpAcq – which sponsors the Sale FC Rugby stadium, close to its Altrincham base – has built up a portfolio of more than 40 companies.
She specializes in buy and build strategies, with a focus on companies operating in the industrial products and services sectors.
The company’s acquisition plan allows SME founders to retain management control while securing a long-term investment partner providing operational support to these businesses.
The founder of CorpAcq is Simon Orange, brother of Jason, former member of Take That, and co-owner of Sale Sharks.
In 2023, a special purpose acquisition company (SPAC) founded by Michael Klein, a leading Wall Street financier, announced a $1.5 billion plan to take CorpAcq public.
The merger was called off in August last year, with Mr Klein’s vehicle, Churchill Capital VII, citing difficult conditions in the IPO market.
Banking sources said TDR and CorpAcq began discussions well after the SPAC deal was abandoned.
The deal, which could be announced within weeks, is the latest by TDR, which also counts pub giant Stonegate and David Lloyd Leisure among its investment portfolio.
A TDR spokesperson declined to comment.