New Poundworld owner to invest in new stores

14-May-2015 - Last updated on 18-May-2015 at 08:42 GMT

Poundworld Retail operates the Poundworld and Bargain Buys fascias

Poundworld Retail’s store expansion drive will accelerate in the wake of its acquisition by private investment firm TPG, according to a statement by the new owner.

The discount chain currently operates more than 280 stores under the Poundworld and Bargain Buys fascias and food and drink makes up more than a third of its product offering. It employs more than 6,000 people and serves more than 2M customers a week.

In a statement on the transaction, which involves investing in a majority stake of the business, TPG said: “TPG will inject new equity capital to fuel an accelerated store expansion program nationwide, facilitate investments in new distribution facilities and deploy best in class retail practices supported by advanced data analytics.

‘Opportunity to grow’

“The company also sees a significant opportunity to grow the business and its product offering to meet the increasing demand for value variety retailers, which are now recognised as part of the mainstream retail landscape.”

Poundworld founder and ceo Christopher Edwards senior, chief procurement officer Christopher Edwards junior and other current senior executives would retain a substantial minority stake in the company, TPG confirmed. That suggests they will continue to play an active role in the business.

The operational centre of Poundworld would remain in Normanton, West Yorkshire, and with its growth will increase employment in the region as well as in the communities which host new Poundworld stores, TPG said.

‘Next phase’

Edwards senior 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.”

TPG partner Abel Halpern said: “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.”

Poundworld and its shareholders were advised on the deal, the financial terms of which were not disclosed, by accountancy firm PwC’s corporate finance team in Yorkshire, led by director Dan Sheahan. They received legal advice from Squire Patton Boggs in Leeds, led by corporate partner Richard Hunt.

Poundworld grew out of a Wakefield market stall, which began trading in 1974, and became Poundworld exactly 30 years later.