Private equity firms are exploring sales of several major UK retail and consumer businesses, including Morrisons, PizzaExpress and Itsu, as buyout groups seek to exit longstanding investments and return capital to investors, according to a report by the Financial Times.
Other businesses attracting sale interest or considering potential transactions include Waterstones, Poundland and luxury gym operator Third Space, as sponsors look to capitalise on improving conditions for mergers and acquisitions.
The potential disposals follow the $8.9bn sale of Boots by Sycamore Partners and the Pessina family to Canada’s Weston family, a transaction that has raised expectations of renewed dealmaking activity in the UK consumer sector.
PizzaExpress is exploring a sale, with advisers appointed to oversee the process, while Morrisons has also been the subject of potential takeover interest. Sainsbury’s recently held discussions over a possible acquisition of the supermarket chain, according to the FT.
UK retail M&A activity has shown signs of recovery in 2026, with transactions reaching $10.1bn across 54 deals, more than double the value recorded in the previous year, according to figures cited by the FT.
Despite the increase in activity, buyers remain selective, with concerns over consumer spending, profitability and economic conditions continuing to weigh on valuations.
The potential sales are expected to test investor appetite for UK consumer assets, particularly businesses with established brands and opportunities for growth, as private equity firms seek liquidity from older portfolio holdings.
