Discount retailer Poundland sold off in £200m deal
Discount retailer Poundland has been snapped up by a private equity buyer.
The firm, which sells all its products for £1, was bought by Warburg Pincus in a deal thought to be worth around £200m, although no sum was officially disclosed.
The takeover comes as the retailer tomorrow opens its 11th store in Northern Ireland in Londonderry's Ferryquay Street, creating 30 jobs.
Poundland now has stores in Strabane, Banbridge, Castle Court, Ann Street, Connswater and Park Centre Belfast, Lisburn, Magherafelt, Newtownards, and Portadown. In total the existing 10 Poundland stores throughout Northern Ireland have created in the region of 300 jobs.
The discount chain has entered the Northern Ireland market at a time when many other retailers are struggling as cash-conscious shoppers sought out bargains. It has said it anticipates further growth in the province.
Poundland's current owner and fellow buyout firm Advent International said the deal was "fantastic" for the company and its 7,000 employees.
West Midlands-based Poundland is Europe's largest single price discount retailer.
Sales in the year to March rose by about a quarter to approximately £510 million and the firm said it expects to generate revenues above £700m in 2011.
Advent said the £1 model was resilient both in periods of recession and economic growth.
The company also estimated the UK discount retail market was worth £24bn and "more robust" than other areas of the high street.
Poundland, which was founded in 1990, sells a wide range of items including health and beauty items, household products and food.
The company serves almost three million shoppers a week.