Focus DIY, one of the UK's largest DIY retailers, announced today that it has appointed the investment bank NM Rothschild to conduct a strategic review of the business that could lead to a sale. 

It is estimated that in the event of a sale, owners Apax Partners and Duke Street Capital would be looking for an asking price of up to £300m. 

The company, which has senior debts of around £180m and mezzanine bond debts of around £100m, will also consider other options such as a debt-for-equity swap. Its current business plan, negotiated in January 2006, is agreed until July this year.

In a statement, chief executive Steve Johnson said that the review would “evaluate the most appropriate ownership and financing structure for the group going forward.”

For the twelve months to October 2006, Focus reported EBITDA (before exceptional items) of £42.7m. The company also said that total sales for the 17 weeks to January 2nd had increased by 3.4 per cent, which it described as “an improving trend, following the sharp declines of the previous 18 months” despite the market remaining “challenging”.