(Adds details on company)
LONDON May 15 UK discount retailer B&M is
poised to announce plans next week for a London share listing in
a deal which could be worth at least 2 billion pounds ($3.4
billion), several people familiar with the matter said on
The company, which sells everything from greenhouses to
trampolines, has been owned by US private equity fund Clayton
Dubilier & Rice since 2012. It has grown to over 370 stores and
17,000 staff across the UK since being founded in the northern
city of Blackpool in 1978.
Last month it was reported that B&M was seeking to refinance
585 million pounds of loans ahead of a potential listing.
B&M made pre-tax profits of 88.3 million pounds in 2012. A
valuation of 2 billion pounds would give the firm a multiple of
nearly 23 times earnings, although sources cautioned that the
deal would likely be in excess of that figure.
The company's flotation plans come two months after
Poundland, another British discount chain, had its
Poundland, which was backed by private equity firm Warburg
Pincus and has over 500 UK and Ireland stores, currently
has a market capitalization of 765.19 million pounds and is
trading at almost 29 times pre-tax earnings.
However shares have fallen around 13.5 percent since its
debut and were last trading at 307 pence each at 1553 GMT.
The B&M listing is being run by Goldman Sachs and
Bank of America Merrill Lynch.
B&M declined to comment.
($1 = 0.5960 British Pounds)
(Reporting by Freya Berry and Anjuli Davies; Editing by Elaine