Private equity group considers £3.8bn takeover of Poundland owner

Poundland’s owner Pepco could be the subject of a £3.8bn takeover bid by three private equity firms.

According to Sky News, Advent International, which sold Wolverhampton-based Poundland for £200m a decade ago, is set to launch a huge joint bid with Hellman & Friedman and Mid Europa Partners for Pepco.

Investment bank Rothschild is said to be advising the consortium as it mulls over a deal.

Pepco employs more than 33,000 people and trades under its own name and the Dealz brand in Eastern Europe, boasting some 2,700 outlets.

Pepco’s owner, Steinhoff International, had been considering an IPO. Sky News says that the rumoured deal provides “a credible alternative” to any plans to float.

Poundland was taken private by Steinhoff in a £600m deal in 2016.