CVC and Providence Equity Partners are circling Caudwell Group, the phone empire of billionaire John Caudwell, which yesterday unveiled a set of strong trading results.
The two firms are among several private equity players to have expressed an interest in the company, which is now taking second-round bids. Mr Caudwell yesterday predicted the business would be sold within the next six months.
Though trade buyers are also understood to be interested in the company, Mr Caudwell said he would prefer a private equity buyer because it would cause less disruption for the business. He is also reluctant to have rivals poring over his books.
Yesterday the group, which includes the Phones 4 U high street retail outlets, issued a trading statement, which showed that profits for the year to December 31 had outstripped forecasts on the back a 15 per cent rise in sales to £2.12 billion. Earnings before interest, tax, depreciation and amortisation reached £161 million, compared with forecast earnings of about £115 million.
Sales at the group’s 20:20 Logistics business, its mobile distributor, also surged 39 per cent.
Advertisement
Mr Caudwell said the “record year” had been helped by the interest of younger consumers in 3G mobile phones. The bulk of the Caudwell Group revenue is generated by the Phones 4 U stores.
The group, which has more than 350 outlets, aims to open 100 new stores in Britain this year and to set up futher stores abroad, most likely in Spain. At present Caudwell has just one Phones 4 U outlet outside of the UK.