Brakes Group, one of the UK’s largest food distributors, is understood to have postponed plans for a stock market flotation in London that could have valued it at up to £2.5bn.
The company declined to comment on Tuesday but stock market sources said recent investor nervousness had persuaded majority shareholder Bain Capital, the private equity group, to put its London IPO plans on hold.
Brakes had not officially decided to float but its advisers had been holding discussions with potential investors with a view to determining any possible appetite for a deal. However, a meeting with investors thought most likely to participate is understood to have been cancelled.
It is the first big UK deal to have been postponed this year in reaction to turbulent stock markets.
The group, which supplies food to pubs, restaurants, schools and hospitals, made profits of about £150m last year on turnover of £3.1bn.
Another indication of the fragile market came on Tuesday as CMC Markets, the spread betting group led by the Brexit campaign donor Peter Cruddas, indicated a mid-point valuation for its upcoming flotation of £740m. Earlier estimates suggested the group might have achieved more than £800m.
It is possible that Bain, which bought Brakes in 2007, will now try to sell the group, which employs more than 10,000 people.
The banks working on flotation plans were Goldman Sachs, JP Morgan and Barclays, with Lazard also advising.
The company said in a statement: “As we have previously highlighted, the group continues to consider a range of strategic options for the next stage of its development. This may include a flotation, other transaction and/or a change in its capital structure. No decision has yet been taken, and the current market conditions have not impacted this process in any way.”
