The sale process of Italian non-food discount retailer Acqua & Sapone has entered the second phase, three sources familiar with the situation told Mergermarket.

Mediobanca is acting as the sell-side advisor for the current owner, H.I.G. Capital, and binding offers are expected in the coming weeks, the sources said.

Potential buyers for Acqua & Sapone submitted first-round offers last month, the sources said. The deadline for the binding offers has been set for the first week of May, one source said, without disclosing the exact date.

Following an evaluation process, a shortlist of three bidders has emerged, the sources said. They are all private equity (PE) funds including CVC Capital Partners, TDR Capital, and a third undisclosed US-based firm, the sources said.

In March, the Italian press reported that H.I.G. Capital had launched a sale process for its 62.5% stake in Acqua&Sapone in a deal valued between EUR 550m and EUR 650m.

In the middle of March, another press report said that HIG had received various unsolicited approaches from major PE firms. The company had a turnover of EUR 1.2bn and an EBITDA of EUR 150m, according to the same report.

H.I.G. Capital acquired a controlling stake in Acqua & Sapone for an undisclosed sum in October 2021. At the time, the Barbarossa family held a minority stake.

H.I.G. Capital, Mediobanca, CVC, TDR Capital declined to comment. Acqua & Sapone did not return requests for comment.