DISCOUNT clothing and homewares retailer Matalan is said to be a £1.5bn takeover target for a number of private equity firms.
The group, which is majority owned by founder John Hargreaves, has reportedly hired PricewaterhouseCoopers to advise on a possible sale.
Matalan’s chief executive, Alistair George, is understood to have met a number of potentially interested parties, although no bid has been tabled and talks are at a very preliminary stage, according to a Sunday newspaper.
CVC Capital Partners is believed to be among several private equity firms circling the Skelmersdale-based company, which has 203 outlets.
A deal would net hundreds of million of pounds for Mr Hargreaves, who took the business private in an £827m deal backed by £410m of debt three years ago.
Matalan’s operating profits reached £102m in the year to February 28, up from £89.4m a year earlier.
Mr Hargreaves opened the first Matalan store in Preston in 1985, taking inspiration from low-price, out of town retailers in the US.
