B&M Bargains has today pushed the button on its IPO as it reveals plans to replicate the success of US value retailer Dollar General.

The value general merchandise retailer aims to raise £75m on the premium listing to pay down debt.

B&M’s private equity owner CD&R is expected to sell a proportion of its share. B&M chief executive Simon Arora and trading director Bobby Arora will retain the majority of their stake and continue to lead the business.

The 373-store retailer said the “potential for further growth is significant” as an estimated 66% of the UK population does not currently have easy access to a B&M store.

B&M recently acquired an 80% stake in German discount chain JA Woll and aims to grow the business in Europe. The statement said: “In exploiting the opportunities in European discount retail, B&M aims to replicate the success of Dollar General in the US and the business models of both companies share many similarities. Dollar General has a 20 year track record of growth in the US and today has more than 11,000 stores with revenues of over $17bn.”

Former Tesco boss and B&M chairman Sir Terry Leahy said: “B&M is a first-class business operating in a genuinely exciting segment of the retail market, driven by a founder-led, ambitious and entrepreneurial management team. The business has delivered impressive growth as a private company, but there is much more to come. I believe B&M has a bright future and that its listing on the London Stock Exchange will position the Company for its next stage of development.”

B&M revealed that in the year to March 29 sales surged 28% to £1.272bn and like-for-likes jumped 6.5%. Adjusted EBITDA surged 24% to £130m. And it opened 42 net stores in the period.

B&M said that since the year-end it has continued to trade “strongly” and generated record sales over the Easter period.

B&M has also appointed four non-executive directors across retail and FMCG. It has hired Carrefour director Thomas Hubner, director of The Pantry and former executive vice president of Dollar General Kathleen Guion, N Brown director Ron McMillan and Harry Brouwer, the current executive vice-president of Unilever Germany, Austria and Switzerland.

Simon Arora said: “Over recent years the UK has witnessed a sustained structural shift towards value retailing among consumers. Shopping habits have changed permanently as a result, with B&M completing about 2.7 million transactions a week. As the success of Aldi and Primark demonstrates, everyone loves a bargain.

“The team are very excited by the opportunity to grow the business even further, both in the UK and in Germany, following our recent acquisition of a majority stake in JA Woll, a transaction that presents significant opportunities particularly in sourcing, and meaningful roll-out potential.”

B&M Bargains pushes button on IPO as it reveals ambitious growth plans