Poundland sold for £200m
Who?
Willenhall discount retailer Poundland.
Did what?
Has been bought by private equity firm Warburg Pincus in a deal thought to be worth £200m.
What does this mean?
Current owner and fellow buyout firm Advent International said the deal was "fantastic" for the company and its 7,000 employees. Jim McCarthy, chief executive at Poundland, said: “We have enjoyed continued support and witnessed tremendous growth under Advent’s ownership. This deal is great news for all of our customers, colleagues and suppliers and one that will support our ongoing growth plan.” Sales at Poundland in the year to March rose by about a quarter to approximately £510m and the firm said it expects to generate revenues above £700m in 2011.
Who advised?
Advent was advised by Close Brothers, Weil Gotshal and Manges and KPMG. Warburg Pincus was advised by Credit Suisse, PricewaterhouseCoopers and Clifford Chance. Cradley Heath law firm George Green acted for management.
Insider comment:
This is the second major deal in recent weeks involving Advent, after it bought Yorkshire-based DFS for £500m. At the time of the deal, Advent told Insider it would continue to invest in the furniture retailer. Following suit, it appears likely that Warburg Pincus will continue investment in Poundland, supporting the ambitious growth plans already in place.
