Davis Polk is advising Tesco plc in connection with the sale of the substantive part of Fresh & Easy’s operating business to YFE Holdings Inc., an affiliate of Yucaipa Companies LLC. The transaction, which is subject to the necessary legal and regulatory approvals, is expected to be completed within three months.

Tesco is one of the world’s largest retailers with a team of over 530,000 people in 12 markets dedicated to bringing the best value, choice and service to its millions of customers each week. Fresh & Easy opened its first stores in November 2007 and has 200 neighborhood markets in California, Nevada and Arizona. Founded in 1986 by Ron Burkle, Yucaipa is a premier investment firm that has established a record of fostering economic value through the growth and responsible development of companies.

The Davis Polk team includes partners George R. Bason Jr., Donald S. Bernstein, John H. Butler and Marc O. Williams, and associates Brian J. Snyder, Damon P. Meyer and Daniel M. Silberger. Partner Kathleen L. Ferrell is providing tax advice. All members of the Davis Polk team are based in the New York office.