B&M secures £25m debt deal
DISCOUNT retailer B&M Bargains has lined up a £25m revolving credit facility with Barclays Bank.
Barclays, which became B&M’s bank in 2008, said it is also handling all money transmission, card acquiring and foreign exchange.
In December US private equity house Clayton Dubilier & Rice (CD&R) took a “significant stake” in a deal which may have valued the Liverpool-based chain at more than £900m.
It has sales of over £1bn from 320 stores and international expansion is now on the agenda.
The credit deal was arranged by the Barclays corporate banking team in Manchester led by Jane Khaliq, relationship director for retail and wholesale, and Glenn Clarke, head of debt finance North West.
B&M Retail was bought by brothers Simon and Bobby Arora from private equity firm Phildrew Ventures in 2005 when it had annual sales of £65m.
Managing director Simon Arora said: “Barclays first became B&M’s bankers five years ago, when others dismissed retail as an unattractive sector. Since then, we have enjoyed continuous support during a period of rapid growth and lately the participation in the leveraged buyout that brings in some impressive new equity investors.
“Barclays has been a faultless supporter and advocate of the business. In particular, there has been great continuity of relationships which I believe has played an important part. We are enjoying a really strong start to the year’s trading and I am convinced we are only halfway through the growth story.”
