Clayton Dubilier & Rice To Acquire Significant Stake in Leading
UK Variety Retailer, B&M Retail
LONDON and NEW YORK, Dec. 3,
2012 /PRNewswire/ -- Clayton, Dubilier & Rice, LLC
("CD&R") and B&M Retail Ltd ("B&M" or the "Company")
today announced that funds managed by CD&R have agreed to
acquire a significant stake in the parent company of B&M.
Terms were not disclosed.
B&M, owned by the Arora family, is one of the UK's leading
discount retailers with stores situated in the north of
England, Scotland, Northern
Ireland and Wales. B&M will continue to be managed
by its existing management team. Since its acquisition in 2005, the
business has grown rapidly to over 300 stores, with sales in excess
of £1 billion and employing over 10,000 people. Its stores
attract over two million customers per week with a value offer of
food and non-food products.
"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."
Simon, Bobby and Robin Arora,
owners of B&M Retail, commented: "We are delighted to have the
opportunity to partner with CD&R. 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."
Don Gogel, Chairman and CEO of
CD&R commented: "The Aroras are exceptional entrepreneurs who
have done a great job building a business that is trusted and
supported by loyal customers. B&M has excellent opportunities
for growth and we look forward to working with them to help the
Company realize its prospects."
Sir Terry Leahy, a senior
operating adviser at CD&R, will serve as Chairman. He was
previously the chief executive of Tesco plc. 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. Marco
Herbst and David Novak of
CD&R will also join the Board.
CD&R was advised by Bank of America Merrill Lynch,
Clifford Chance, Debevoise &
Plimpton, Ernst & Young and Bain & Co. B&M was advised
by Rothschild, Allen & Overy, PWC and OC&C.
About B&M
Established in 1976, B&M Retail Ltd
trades from stores across the UK. B&M sells top branded
products at low prices to customers across the UK and Northern Ireland.
B&M's first store was in Blackpool, Lancashire, and has grown to over 300 stores
and employs over 10,000 staff, with its headquarters in
Liverpool.
About Clayton, Dubilier & Rice
Founded in 1978,
Clayton, Dubilier & Rice is a private equity firm with an
investment strategy predicated on producing financial returns
through building stronger, more profitable businesses. Since
inception, CD&R has managed the investment of over $18 billion in 54 U.S. and European businesses
with an aggregate transaction value of more than $80 billion. For more information, please visit
www.cdr-inc.com.
Contact:
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Thomas C.
Franco
+1 (212) 407 5225
tfranco@cdr-inc.com
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Daniel G.
Jacobs
+1 (212) 407 5218
djacobs@cdr-inc.com
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Anthony
Silverman
+44 (20) 3370 0013
ads@stockwellgroup.com
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SOURCE Clayton, Dubilier & Rice, LLC