TPG takes majority stake in Poundworld in £150m deal

Chris Edwards, founder and managing director of Poundworld a their HQ in Normanton.  24 October 2014.  Picture Bruce Rollinson
Chris Edwards, founder and managing director of Poundworld a their HQ in Normanton. 24 October 2014. Picture Bruce Rollinson
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THE US buyout giant TPG has acquired a majority stake in Poundworld in an equity-only deal said to be worth £150m.

Today’s agreement is the result of a hotly contested sale process that attracted major interest from investors.

Founder and chief executive Christopher Edwards Sr, chief procurement officer Christopher Edwards Jr and other senior executives will retain a substantial minority equity position in the company.

TPG said it will inject new equity capital to fuel an accelerated store expansion program nationwide, invest in new distribution facilities and “deploy best in class retail practices supported by advanced data analytics”.

Founded in 1974, Poundworld is a leading player in the fast-growing UK value retail sector, serving over two million customers weekly from more than 280 sites under the Poundworld and Bargain Buys brands.

Mr Edwards Sr said: “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.”

Abel Halpern, a partner at TPG added: “We see the continuing rise and evolution of the value retailer as an exciting change in the UK retail landscape.

“Poundworld has succeeded in building one of the leading positions in the market with a focus on consumer preference, convenience and value.

“With our financial backing and retail experience, combined with Poundworld’s entrepreneurial dynamism and strong brand, the business is now well positioned for continued growth.”

Richard Hunt of Squire Patton Boggs, who provided legal advice to Poundworld, said the management team know the retail sector “inside out”. PwC also advised.