Poundland set for expansion after takeover
May 5 2010 by Henryk Zientek, Huddersfield Daily Examiner
DISCOUNT retailer Poundland has been bought by a private equity firm.
Poundland, which sells all its products for £1 and has a store at New Street in Huddersfield, was bought by Warburg Pincus in a deal thought to be worth about £200m – although no sum has been officially disclosed.
Selling the business, fellow buyout firm Advent International said the deal was “fantastic” for the company – billed as Europe’s largest single price discount retailer – and its 7,000 employees.
The West Midlands-based firm said the deal would support further growth.
Poundland lifted sales by about 25% to £510m in the year to March and the company said it expects to generate revenues above £700m in 2011.
The company also estimated the UK discount retail market was worth £24bn and said it was “more robust” than other areas of the high street because it was resilient in good times and bad.
Poundland, which was founded in 1990, sells a wide range of items including health and beauty items, household products, stationery and food.
It serves almost 3m shoppers a week after trebling its customer base since being bought by Advent as part of a management buyout in 2002.
Since then it has increased from 70 stores to more than 260 across the UK and has created more than 4,000 jobs.
Chief executive Jim McCarthy said the firm had “witnessed tremendous growth” under Advent’s ownership.
“Through our partnership, focused around a very successful programme of new store openings, we have brought Poundland’s ‘Amazing Value’ shopping experience to even more customers across the country,” he said.
“This deal is great news for all of our customers, colleagues and suppliers and one that will support our ongoing growth plan.”