B&M Bargains launches IPO

Date : 22 May 2014

High street discounter B&M Bargains has launched an initial public offering (IPO).  

Positions B&M for next stage of development

It is expected that CD&R, the private equity group which owns the majority share of B&M, will sell some of its share, while B&M's chief executive Bobby Arora and trading director Simon Arora will keep the majority of their stake and remain in charge of the business. 

This comes at a time when B&M has been performing very strongly, with growth of 28% in the year to March 2014, and total sales of £1.27bn. 

B&M's chairman, Sir Terry Leahy, was quoted: "B&M is a first-class business operating in a genuinely exciting segment of the retail market, driven by a founder-led, ambitious and entrepreneurial management team. The business has delivered impressive growth as a private company, but there is much more to come. I believe B&M has a bright future and that its listing on the London Stock Exchange will position the company for its next stage of development." 

Follows investment in German discounter

At the end of March, B&M announced the planned acquisition of a majority shareholding in German general merchandise discounter JA Woll Handels. The discounter operates 49 stores under the JAWOLL and HAFU fascias. It reported sales of EUR155m in 2013. The transaction, which is subject to regulatory approval, marks B&M group's first investment in Germany.