B&M Bargains sold to US private equity firm
Discount retailer B&M Bargains has been sold to US private equity firm Clayton, Dubilier & Rice in a deal which will see Sir Terry Leahy, the former CEO of Tesco, become its chairman.
CD&R has bought a “significant stake” in the company which was acquired by the Arora family in 2005. Since the acquisition, the business has grown rapidly to over 300 stores, with sales in excess of £1 billion and 10,000 employees. Following the sale, B&M will continue to be managed by its existing management team.
“B&M is a fantastic retail format in the growing discount sector,” said David Novak, a partner at CD&R. “We are pleased to have the opportunity to partner with the management team to accelerate the growth of the business by widening its market presence outside of the UK, and continue to build the B&M brand. We believe the value based general merchandise retail model could have significant appeal in overseas markets.”
Sir Terry Leahy, a senior operating adviser at CD&R, will serve as chairman. He will be joined on the board by Vindi Banga, the former President of Foods, Home and Personal Care and member of the Unilever plc Executive Board, and by Marco Herbst and David Novak of CD&R.
Never Miss a Retail Update!Simon, Bobby and Robin Arora added: “We are proud of the success we have had with B&M since acquiring it in 2005, but recognise that we need a partner to bring the expertise to ensure the business fulfils its overseas potential. CD&R has very relevant retail sector experience and a strong track record of working in partnership with management teams to successfully grow businesses across different territories.”
