Ousted Somerfield chief in line to manage Robert Dyas

Luc Vandevelde's private equity vehicle has lined up Alan Smith, ousted as chief executive of Somerfield 18 months ago, as the new head of Robert Dyas, the high street hardware chain that Change Capital is on the cusp of buying.

The purchase of Robert Dyas for about Pounds 60m will be the first deal for Change Capital, set up more than a year ago by Mr Vandevelde, chairman of Marks and Spencer. The fledgling private equity group can tap close to Euros 1bn (Pounds 671m) of capital from the Halley family, one of the biggest investors in the Carrefour retailing group and Change's principal backer.

Change was unavailable for comment last night. But a person close to the situation said an agreed deal was likely in the next week or so.

The sale would mean a multi-million pound windfall for Roger Pedder, head of Clarks shoes and chairman of Robert Dyas, and Brent Wilkinson, the chain's chief executive, who are expected to leave the business when it is taken over.

The pair were involved in an Pounds 8m management buy-out of the business in 2001, which left them with a stake of close to 30 per cent. The family of the group's founder, who opened the first outlet in Fetter Lane in the City in 1872, retain about 45 per cent.

Annual sales are running at more than Pounds 70m. In the five weeks to January 3, the 75-store chain reported a 15 per cent rise in sales and an 8.7 per cent improvement on a like-for-like basis.

Mr Smith's most recent role was as interim chief executive of Esporta, the health clubs group acquired in a hostile Pounds 145m bid by Duke Street, the private equity group, in 2002.

Prior to Somerfield, Mr Smith held the role of chief executive at Punch Taverns, the pubs group; Evans Halshaw, the car retailer; and Boddingtons, the leisure retailer. He was also managing director of B&Q, the DIY group owned by Kingfisher, between 1992 and 1995.

Change Capital was set up to focus on the retail and consumer industry sectors in western Europe. It is expected to expand Robert Dyas's current store network out of its stronghold in the south-east of England. The group is looking to add five or six new stores each year but that rate of expansion would be stepped up under its new owners.

Mr Smith is also likely to hire new senior managers to help him run the business. At the launch of Change Capital, Mr Vandevelde said: "The biggest value I can add is putting the right management team together to run the business, and that's why I think we will be better than other private equity groups."