Clayton, Dubilier & Rice has acquired a “significant” stake in UK discount retailer B&M, according to a statement.
CD&R used investment capital from its $5 billion Fund VIII in the transaction, the terms of which were not disclosed.
Fund VIII is approximately 75 percent invested, according to a source with knowledge of the deal.
The fund was generating a 1.3x return multiple and 15 percent internal rate of return as of 31 March, according to Maryland State Retirement and Pension System documents.
Former Tesco chief executive and CD&R operating partner Terry Leahy will join B&M as chairman. Vindi Banga, formerly the president of Foods, Home and Personal Care, will also join B&M's board alongsideMarco Herbst and David Novak of CD&R.
B&M will continue to be managed by its existing management team, according to the statement. The retailer has more than 300 stores in the north of England, Scotland, Northern Ireland and Wales.
CD&R was founded in 1978. The firm has managed around $18 billion in investments across 54 businesses and maintains offices in New York and London.
Firm co-founder Joseph Rice stepped down from his role as chairman earlier this year. He announced his intention to relinquish the role in a letter to investors published by The New York Times in April.