Private equity group confirms Maplin talks

Electronics retailer Maplin could be sold after it emerged today that talks were taking place over a deal thought to be worth £240m (€356.4m).

Graphite Enterprise Trust, which is believed to have a 70% stake in Maplin, declined to name the potential buyer but media reports said Montagu Private Equity was preparing a bid.

Graphite confirmed discussions were taking place, but added: “No binding agreement has been reached and there is no certainty that a disposal will take place.”

The private equity group bought a stake in Maplin, which has 85 stores in the UK and Ireland, when backing a £42m (€62.4m) management buyout in 2001.

The Barnsley-based retailer has expanded dramatically since then with profits last year reaching £17.9m (€26.6m) against just £1.4m (€2.1m) in 1999.

Annual sales now total £99.2m (€147.3m) and Maplin has stepped up its store opening programme, including 13 mainly out-of-town stores last year.

A similar number of outlets are expected to open this year as Maplin looks to build a 250-strong estate.

According to a report in The London Times, eight managers at Maplin are in line to share a £44m (€65.3m) paper fortune if the sale is completed.

Managing director Graham Caldwell is understood to be in line for an £8m (€11.9m) windfall, with chairman Keith Pacey splitting the remaining cash with six others.

It is thought the directors will re-invest half their stake if ownership of the company changes hands.