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B&M now worth more than Home Retail Group

DISCOUNT retailer B&M Bargains will float at 270p a share next week, valuing the group at £2.7bn.

EDIT: As a result, B&M is now worth more than Dixons, Ocado and Home Retail Group (London Evening Standard).

The June 17 listing on the main market will raise around £1bn, with most of this going to shareholders.

These are the Arora brothers - Simon, Bobby and Robin - and US investment house Clayton Dubilier & Rice which backed a £1bn buyout in late 2012.

The Speke-based company, which will still be led by the Aroras, will take £75m and use it to fund a major European expansion programme.

The retailer, which sells everything from food to greenhouses and trampolines, has grown to 373 stores and 17,000 staff across the UK since being founded in Blackpool in 1978.

In the year to the end of March the business saw earnings before interest, tax, depreciation and amortisation (EBITDA) jump 24% to £130m on sales of £1.27bn, up 28%. Like-for-like revenue growth is up 6.5%.

The target is for 850 UK stores and European expansion which started in March with the acquisition of German retailer Jawoll which has revenues of £131m.

Chief executive Simon Arora said: "We are delighted that investors have demonstrated their support for B&M and its growth story in the value sector and that they share our excitement about the group's future. We believe that becoming a public company gives us the right long-term ownership model, allowing us to build on our strong track record as we move to the next stage of development.

"We look forward to continuing to offer incredible value to our loyal customers, to bring the B&M experience to more people as we roll out stores and to breathe life into high streets and retail parks across Britain, creating thousands of jobs each year."

Source : James Graham - BusinessDesk.com
www.thebusinessdesk.com/northwest/news/630487-ipo-values-retailer-b-amp-m-at-2.7bn.html

Source : London Evening Standard www.standard.co.uk/business/business-news/sir-terry-leahys-bm-lists-at-27-billion-with-sir-philip-green-set-to-follow-9531603.html)

12 June 2014
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