Brakes Brothers, one of Europe’s biggest food distributors, has been put up for sale with a price of £1.2 billion.

The company, which is owned by the US private equity firm Clayton, Dubilier & Rice, has hired the investment banks Deutsche Bank and JPMorgan to run the sale, sources close to the situation said.

It is understood that the banks plan to send out information to prospective bidders imminently.

Deutsche Bank will also provide staple financing to bidders on the sale, the sources said.

Brakes Bros is one of the biggest catering suppliers in Europe, servicing hundreds of pubs and restaurants.

It is understood that CD&R has been weighing its options over Brakes for several months, including an initial public offering of the business.

It selected Deutsche Bank and JPMorgan after a recent beauty parade of banks, sources said.

Brakes was established by the brothers William, Frank and Peter Brake in 1958, when they started supplying poultry to caterers.

In 1991 the company was renamed Brake Bros Foodservice Ltd and in 2002, after dozens of acquisitions, it was rebranded as Brakes.

CD&R acquired the business the same year for £434 million with the backing of the founding family.

JPMorgan Partners, the private equity arm of JPMorgan that was spun off to avoid conflict of interest issues with clients, also co-invested in the buyout, sources said.

Brakes is led by Frank McKay, the chief executive, and Bruno Deschamps, a CD&R executive, is chairman.

Last year the group increased earnings before interest, tax, depreciation and amortisation by 30 per cent to £109 million on sales of £1.67 billion.

The sale of Brakes comes as Ahold, the Dutch retailer, is disposing of its food service division in the US at a price expected to top $5 billion.

The sources said that some of the private equity firms eyeing US Foodservice could also look at Brakes.

They include CD&R, which has teamed up with Kohlberg Kravis Roberts, Texas Pacific Group, Thomas H Lee Partners and Blackstone, which is bidding with Bain Capital.

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