CVC shows interest in discount retailer Matalan

Matalan is reportedly considering a £1.5bn (€1.6bn) sale after a number of parties have shown interest in acquiring the company.

The value retailer was taken private by its founder and controlling shareholder John Hargreaves due to animosity with institutional investors and non-executive directors three years ago. Hargreaves took the chain private for £817m (€885.7m at current exchange rate) in 2006.

It is believed that Matalan has already met with CVC, but no formal auction is under way.

The business, along with discount chains like Primark, has fared well during the recession as cash-strapped shoppers keep an eye on their spending, the report said.

Matalan is planning to expand its operations by moving into the Middle Eastern market.   

CVC scrapped its £765m (€829.2m at current exchange rate) bid for troubled UK travel operator National Express earlier this month. The private equity firm, which had made the offer in partnership with the Cosmen family, National Express’ biggest shareholder, had been due to conclude due diligence before making a formal offer, but instead walked away from the deal.

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