CD&R, SSA sell 12.5% stake in B&M for £454.3m

The offering, which comes two years after CD&R sold down a 12% stake for £384m, consists of 125 million shares priced at 363.4 pence apiece.

Following the partial divestment, CD&R will retain a 4.9% stake in the business, with its remaining shareholding subject to a 60-day lock-up period.

Citigroup, Credit Suisse and Goldman Sachs acted as joint bookrunners in the placing.

B&M launched its IPO on the London Stock Exchange in June 2014 with a market cap of £2.7bn. The offer raised a total of £1.19bn with an overallotment of 40 million shares exercised in full. Slightly more than £1bn of the IPO's proceeds were reaped by shareholders, with only £75m taken by B&M. Alongside CD&R's Fund VIII, the Arora family also sold shares in the offering.

Previous funding
CD&R acquired B&M at the end of 2012 in a deal rumoured to sit around the £950m mark. The firm bought its stake from the Arora family through a Rothschild-run auction process.

Company
Founded in 1978 and headquartered in Liverpool, B&M operates 500 discount stores in the north of England, Scotland, Northern Ireland and Wales, in addition to the JA Woll brand in Germany.

According to publicly available documents, B&M generated a turnover of £2.43bn in the year ending March 2017, with adjusted EBITDA of £234.9m.

People
B&M – Simon Arora (CEO).

Advisers
Vendor – Lazard (corporate finance); Debevoise & Plimpton, Raman Bet-Mansour, Thomas Matthews, David M Becker, Cécile Beurrier (legal, tax).

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• Topics
• Exits
• UK / Ireland
• Consumer
• United Kingdom
• Clayton Dubilier & Rice
• Partial sale