PHONES4U, the mobile store chain founded by Staffordshire entrepreneur John Caudwell, has been sold in a £700m private equity deal.
BC Partners, which owns gym and leisure chain Fitness First, has acquired the High Street name from American parent company Providence Equity.
Mr Caudwell, who still lives in north Staffordshire, is expected to get a second payout from the sale as he and his management team still own 25% of the firm.
Providence bought the business from Mr Caudwell in 2006 at around £1.4bn meaning the firm’s value has since dropped by around half.
Providence Equity had been offered several deals a few months ago for the company but chose to reject them.
This buyout, incorporating 500 stores and 6,000 staff, is believed to be worth between £600m and £700m.
BC Partners is headquartered in London and has a 16-strong portfolio which also includes Foxtons estate agency, tourism technology provider Amadeus and heating products company Baxi.
BC Partners managing partner Andrew Newington said: “With its market leading position, strong and trusted brand, multi-format strategy, and extensive store network, Phones4U is ideally positioned to benefit from further strong growth in the smartphone market.
“We look forward to working with management, and investing further across the business to maximise its growth potential.”
Phones4U chief executive Tim Whiting added: “I am delighted to have the backing of BC Partners.
“Their track record of growing businesses is hugely impressive, and I am looking forward to working with them in the years ahead.”
The deal is subject to regulatory backing and is expected to be completed next month.
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