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Former Asda boss Mohsin Issa invests £10m in sports supplement firm ahead of London IPO

October 16, 2024

Asda’s co-owner, Mohsin Issa, is stepping away from his role in the day-to-day management of the UK’s third-largest supermarket, despite the fact that a permanent chief executive has yet to be appointed.

Billionaire retail mogul Mohsin Issa, former CEO and co-owner of Asda, has made his first major investment since stepping down from the supermarket giant, putting £10 million into Liverpool-based sports supplements company, Applied Nutrition. The company is preparing to go public on the London Stock Exchange.

Issa’s investment in Applied Nutrition comes through his investment vehicle, Boulder Investco Limited, and marks his initial foray into new ventures following his departure from Asda’s leadership in September. His exit followed a dip in sales that was publicly criticised by Asda’s chairman, Lord Rose. Despite stepping down as CEO, Issa remains a co-owner of Asda with a 22.5% stake and holds a seat on the board.

This investment also signals a shift in Mohsin Issa’s business trajectory as he and his brother, Zuber Issa, untangle their joint business interests. The brothers, who are worth an estimated £5 billion, have built a vast empire, including petrol station operator Euro Garages, which became a launchpad for their £6.8 billion takeover of Asda in 2021 alongside private equity firm TDR Capital.

In recent months, the Issa brothers have divided their interests, with Zuber selling his 22.5% stake in Asda to TDR Capital in June. Zuber also stepped down as co-CEO of their forecourt business, EG Group, after acquiring the UK operations for £228 million, which he now runs independently. Despite the split, Mohsin has downplayed any rumours of a rift, maintaining that the brothers “get on exceptionally well.”

Applied Nutrition, which produces protein supplements and other sports nutrition products, is chaired by Andy Bell, founder of investment platform AJ Bell. The company has set the price range for its initial public offering (IPO) at between 136p and 160p per share, giving it an estimated valuation of between £340 million and £400 million.

Mohsin Issa joins a group of four prominent North West entrepreneurs backing the IPO, including Home Bargains founder Tom Morris and Liverpool property developer George Downing. Together, the investors are expected to hold up to 7% of the company following the IPO.

Applied Nutrition’s growth and upcoming stock market listing are further bolstered by a significant 32% stake from JD Sports, the Bury-based retail giant. Existing shareholders plan to sell approximately 137 million shares, valued at between £186 million and £220 million.

This investment marks another step in Issa’s post-Asda ventures, as he continues to focus on backing successful entrepreneurs and UK businesses. In a joint statement with his brother, Mohsin Issa said: “Our passion is backing great entrepreneurs and helping them to build strong UK businesses that drive growth and create jobs.”

Applied Nutrition did not comment directly on Issa’s involvement but is expected to benefit from his significant retail and entrepreneurial experience as it moves closer to its public listing.