Poundland completes 99p Stores acquisition

DISCOUNT retailer Poundland’s £55m acquisition of 99p Stores has completed.

The deal includes a cash consideration of approximately £51.5m and the issue of new Poundland Shares with a value of approximately £3.5m.

The acquisition includes 99p Stores’ network of 251 shops, which serve more than two million customers a week, as well as its warehouse and distribution centre. 

The cash element of the consideration and the cash costs associated with the integration and restructuring of 99p Stores has been funded by an equity placing which completed on Friday September 25.

The plan to raise cash was first mentioned on February 6 when Willenhall-based Poundland announced that it had signed a conditional sale and purchase agreement to acquire 99p Stores.

The acquisition was conditional on the approval of the Competition & Markets Authority which gave full clearance to the takeover earlier this month.

Local advisory firms involved in the deal included KPMG (led by Neil Meredith) and Mills & Reeve (led by Peter McLintock).