Retailer Poundland sold for £200m
WEST MIDLANDS-based Poundland has been sold for a reported £200m to private equity firm Warburg Pincus.
Advent International, the global private equity firm, today announced the sale of the company it acquired through a 2002 MBO.
Cradley Heath-based solicitors George Green advised the management team in the latest deal, led by partner Guy Green.
Poundland is one of Europe’s largest ‘single price’ discount retailer, and currently serves almost 3 million customers a week and is forecast in 2011 to generate revenues in excess of £700m. Since 2002 the number of stores has been increased from just 70 to more than 260 across the UK. It employs 7,000 people.
Jim McCarthy, Chief Executive Officer of 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.”
Ron Sheldon, Managing Director, at Advent International, said: “The Poundland brand has become synonymous with the value it provides to its many customers and we are proud to have helped the business become what it is today.”
Guy Green, corporate finance partner atGeorge Green LLP, advised Jim McCarthy’s management team throughout the negotiations between the two VC giants.
Mr Green said: “I haven’t enjoyed a transaction this much for years. Every party wanted to make it happen and it worked out brilliantly.
“It was the right time for Advent to exit, and now with Warburg Pincuss, Jim and the team are ready to take Poundland to a whole new level. There’s a lot of skin left in the game yet. Jim has a great appetite to take the Poundland business formula forward even further, and this is certainly one to watch as there continues to be great opportunities in the value retail sector.”
Advent was advised by Close Brothers (Corporate Finance and Debt Advisory), Weil Gotshal and Manges (Legal) and KPMG (Financial). Warburg Pincus was advised by Credit Suisse (Corporate Finance), PwC (Financial and Commercial) and Clifford Chance (Legal).
