Private equity group in £200m acquisition of Poundland
Discount retailer Poundland, which has a branch in the Arndale Centre and ten others in the Greater Manchester area, has been bought by US private equity group Warburg Pincus from Advent International in an acquisition believed to be worth £200m.
Poundland, which was founded in 1990 in the West Midlands is a 260-strong UK chain where all food, household and consumer items cost £1. It is the largest of the US-style of discount stores in the country and plans a further 50 branches this year.
Trading has continued to be strong in the recession, with sales to March rising by a quarter to about £510m.
Private equity investor Advent bought Poundland for £50m in 2002 and had consulted financial services specialists on possible corporate finance moves before the secondary buyout by Warburg arose. It will be hoping to have similar success with its latest acquisition, UK sofa retailer DFS, which it bought for £500m in April.