Asda has agreed to sell fast-food chain Leon back to its co-founder, John Vincent, marking the brand’s return to independent ownership four years after it was acquired by the Issa brothers’ EG Group.

The deal includes 46 Leon restaurants, 20 UK franchises, and several overseas sites, including three in the Netherlands and one in Italy.

It is understood that around 1,120 staff will transfer to the new business, and while Asda did not disclose the sale price, reports suggest the transaction could be worth between £30m and £50m, representing a steep discount on the £100m paid for Leon in 2021.

In a statement, the supermarket giant said the sale “reflects its strategic focus on strengthening core retail operations”, which include supermarkets, cafés, pharmacy, optical and fuel services.

The grocer added that food service remains an important part of its offer, with more than 300 branded outlets across its estate, including Greggs, Starbucks, Costa Coffee, Subway, Burger King and McDonald’s.

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The move brings an end to Leon’s brief stint within the Asda and EG Group portfolios, signalling a refocus for both sides — Asda on its supermarket operations, and Leon on rediscovering the healthier, fast-casual identity that first defined its brand.

An Asda spokesperson added: “We would like to thank Leon colleagues for their contribution and hard work during the last two years as part of the Asda business and wish them all the best as they move forward under new ownership.”

Vincent founded Leon in 2004 alongside Henry Dimbleby and chef Allegra McEvedy, positioning the chain as a “natural fast food” brand serving healthier, made-fresh options.

After its sale to EG Group, Leon was brought under Asda’s ownership in 2023 as part of the Issa brothers’ wider retail integration strategy.

The reacquisition follows criticism from Dimbleby, who warned in The Telegraph last month that Leon risked being “destroyed” under Asda’s ownership after pivoting towards cheaper, less healthy items such as burgers, fries, and desserts.

In comments following the deal, Vincent said he would now “take a good look under the bonnet” before making “big decisions” about the chain’s direction, reported the publication.

“If you are a Leon guest, we are on the case. We will now get on with dedicating ourselves to your enjoyment and to your health,” he added.

Leon has faced headwinds in recent months, reporting a slight drop in revenues to £62.5m for 2024, down from £64.9m the previous year, amid a tougher consumer environment and shifting spending habits.