UK private equity firm BC Partners has acquired UK handset retailer Phones4U from US private equity group Providence Equity Partners.
The terms of the deal were not disclosed, although it is believed to be worth between £600m and £700m.
BC Partners…
UK private equity firm BC Partners has acquired UK handset retailer Phones4U from US private equity group Providence Equity Partners.
The terms of the deal were not disclosed, although it is believed to be worth between £600m and £700m.
BC Partners was advised on the deal by Global Leisure Partners and Goldman Sachs. Providence was advised by Deutsche Bank.
The transaction is still subject to certain regulatory approvals, but is expected to be completed in April.
It has also been reported that the founder of Phones4U, John Caudwell, could be entitled to a large payout as a result of the deal.
Caudwell reportedly made £1.46bn when he sold 75% of Phones4U and the 20:20 distribution company to Providence in 2006.
Phones4U currently has over 500 stores in the UK and supplies all the major network and handset brands.
Its sales for 2010 were more than £900m, an increase of 20% on the previous year.
Andrew Newington, a managing partner at BC Partners, said that Phones4U was ideally positioned to benefit from strong growth in the smartphone market in the future.
Newington said: “We look forward to working with management, and investing further across the business to maximise its growth potential.”
A Phones4U spokeswoman told TelecomFinance there would be little or no change in the running of the business.
She said: “We are moving from one private equity company to another and our focus remains the same, which is continued growth and investment in the business.”
