Private equity giant buys Poundworld for £150m

VALUE retailer Poundworld has been bought by investment firm TPG which wants to accelerate the chain’s growth.

The £150m, all-cash deal will see founder Chris Edwards and his son, also Christopher Edwards, along with other members of the management team retain a “substantial minority” equity stake.

TPG, which last year put £200m into online retailer Victoria Plumb, plans to accelerate the store expansion programme and invest in distribution facilities. Poundworld plans to open 40 to 50 stores a year over the next three years.

The retailer began life on a Wakefield market stall in 1974 and has grown to more than 280 stores through its two brands, Poundworld and Bargain Buys. It is now based in Normanton and employs 6,000 people nationwide.

Christopher Edwards Sr, Poundworld’s founder and chief executive, said: “After 40 years of building this great company, I am very excited to have a partner like TPG to support Poundworld’s next phase of growth.

“They bring with them an extensive and global body of experience in retailing, which will help us to create the infrastructure and develop new capabilities to reach our very ambitious goals.

“I began this business as a market trader and we now have millions of customers from all corners of the nation and all walks of life. Still, there is so much more for us to achieve.”

Poundworld and its shareholders were advised on the deal by PwC’s corporate finance team in Yorkshire, led by director Dan Sheahan, with legal advice provided by Squire Patton Boggs in Leeds, led by corporate partner Richard Hunt and assisted by Hannah Graham and Craig Pettit.

It is the third deal in three months for Mr Hunt and his team, following the sale of Pirtek Europe and Camira Fabrics. He said: “The management team know this sector inside out. They are an incredible success. It’s a business that is phenomenally well run and with a management team who knows what they want.

“The fact they have made two big deals within 12 months shows that TPG are prepared to look at mid-market businesses in Yorkshire.”

Mr Sheahan added: “The Edwards family story is one of true entrepreneurship and hard work turning a market stall into one of the UK’s fastest growing retailers, now employing over 6,000 people.

“Having worked with the family for many years we are proud to have helped them raise this investment with TPG Capital and are confident that Poundworld will continue its journey of growth, with the financial and operational backing of one of the world’s biggest investors.”