B&M Bargains has been sold to US private equity firm Clayton Dubilier & Rice, which is set to appoint former Tesco boss Sir Terry Leahy as chairman of the value retailer.

Clayton Dubilier & Rice has taken a “significant stake” in B&M Retail in a deal thought to have valued B&M Bargains at £965m, according to Sky News.

Liverpudlian Leahy, who is a senior advisor at CD&R, will take on the chairmanship of the Liverpool based retailer.

The private equity firm has vowed to help propel the 300-store retailer’s rapid growth. Owners the Arora brothers will remain with the retailer.

CD&R partner David Novak said: “B&M is a fantastic retail format in the growing discount sector. We are pleased to have the opportunity to partner with the management team to accelerate the growth of the business by widening its market presence outside of the UK, and continue to build the B&M brand.

“We believe the value based general merchandise retail model could have significant appeal in overseas markets.”

B&M Bargain owners Simon, Bobby and Robin Arora said in a joint statement: “We are proud of the success we have had with B&M since acquiring it in 2005, but recognise that we need a partner to bring the expertise to ensure the business fulfils its overseas potential.

“CD&R has very relevant retail sector experience and a strong track record of working in partnership with management teams to successfully grow businesses across different territories.”

CD&R was advised by Bank of America Merrill Lynch, Clifford Chance, Debevoise & Plimpton, Ernst & Young and Bain & Co. B&M was advised by Rothschild, Allen & Overy, PWC and OC&C.