Private equity firm Cinven is in advanced talks to acquire a major stake in Grant Thornton UK, a deal believed to be among the largest ever in the UK audit industry.
Sky News has learned that Cinven is close to agreeing a deal to acquire the stake, with sources suggesting on Wednesday it could be signed imminently.
New Mountain Capital, which owns a significant stake in Grant Thornton’s U.S. operations, was second in the battle to reach a deal.
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They add that if Cinven emerges victorious from the auction, it would suggest that Grant Thornton’s British partners are keen to retain some independence from their transatlantic colleagues.
Estimates made during the auction process suggest the British company would be valued at more than £1.5 billion.
Cinven is said to have negotiated the purchase of a majority stake.
Other suitors, including EQT, Permira and Carlyle, have been eliminated from the process in recent weeks.
Grant Thornton has around 200 UK associates who will have a say in the deal.
The company has improved its financial performance after a period of turbulence for its management, with a £1.3m fine imposed for “serious failings” in 2022 in relation to its audit of Sports Direct, the clothing empire sports company founded by Mike Ashley and now known as Sports Direct. Frasers Group.
The previous year, she was also fined £2.3 million for demonstrating a “serious lack of competence” in relation to her work on Patisserie Holdings, the owner of the collapsed Patisserie cafe chain Valerie.
Since then, Grant Thornton has significantly reduced the number of clients audited by public interest entities (PIEs), a category that includes banks, insurers and other companies deemed particularly important.
Cinven declined to comment, while Grant Thornton UK could not be contacted for comment.
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A spokesperson for the firm previously said: “As all businesses do, we continually evaluate the external business and economic landscape and explore various avenues that will drive the growth of our firm.
“This allows us to make informed decisions about what is best for our people, our customers and our business.
“No decision has been made and, while we consider our options, we will make no further comment.”