Ardian is preparing to launch a formal auction for French food retailer Prosol, in a deal that could value the business between €3bn ($3.5bn) and €4bn, according to sources cited by Bloomberg.

Prosol, founded in 1992 by Denis Dumont, operates the Grand Frais supermarket chain, which runs more than 250 grocery stores across France and is known for its focus on fresh and local products. The company generated around €400m in EBITDA in its most recent financial year.

US buyout firm Clayton Dubilier & Rice (CD&R) is among the potential bidders. CD&R has an established presence in France, having recently acquired Sanofi’s consumer health unit Opella and home equipment retailer Mobilux, which operates nearly 500 stores under the BUT and Conforama brands. The firm also owns UK supermarket chain Morrisons.

Ardian bought its majority stake in Prosol in 2017, with founder Dumont retaining an interest. Dumont is expected to reinvest as a passive shareholder once a new owner is secured.

Previous sale attempts were abandoned in the wake of the Covid-19 pandemic, but Ardian has revived the process, appointing Zaoui & Co. and JPMorgan as advisers.

Discussions remain preliminary and other potential bidders could emerge, while there is no certainty a transaction will proceed.

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