B&M Bargains has been sold to US private equity firm Clayton Dubilier & Rice - and ex-Tesco CEO Sir Terry Leahy has been appointed chairman.

CD&R said it had taken a “significant” stake in Liverpool-based B&M, but full details of the deal remain under wraps. However, it is understood the three Arora brothers, Simon, Bobby and Robin, valued the business at £965m. The brothers have retained a stake in B&M and will stay on to manage the company.

“We are delighted to have the opportunity to partner with CD&R,” the Arora brothers said in a 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 fulfills its overseas potential.”

The brothers bought then loss-making B&M in 2005. It had less than 20 stores. It now has over 315 stores and employs more than 10,000 staff. It has an annual turnover in excess of £1bn.

New chairman Sir Terry, who is a senior adviser to CD&R, will be joined on the board by former Unilever executive Vindi Banga and David Novak and Marco Herbst of CD&R.

“B&M is a fantastic retail format in the growing discount sector,” said Novak.

“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.”