Lancashire-based variety retailer B&M has been sold to US private equity firm Clayton Dubilier & Rice (CD&R),which has acquired a “significant stake” in the business, it has been announced.
Owned by the Arora family, the discount retailer will be led by retail veteran Sir Terry Leahy who is a senior operating adviser at the US firm and will act as Chairman of B&M.
Leahy previously operated as CEO of grocery giant Tesco and it is hoped hat his strong experience in value offerings will help boost the profile of Britain‘s fastest-growing retailer.
Commenting on the acquisition, David Novak, a Partner at CD&R, said: “B&M is a fantastic retail format in the growing discount sector.
“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.”
B&M was purchased by the Arora brothers in 2005 and now has over 300 UK stores which welcome up to two million customers weekly and reports sales in excess of £1 billion and CD&R Chairman & CEO Don Gogel believes that the retailer has “excellent opportunities for growth”.
Simon, Bobby and Robin Arora, owners of the brand, have been praised for their entrepreneurial talent which has seen the discounter become a market leader and the trio said they are delighted to have the opportunity to build the business further.
The brothers said: “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.”