TPG takes £150m stake in Poundworld

The deal was unleveraged and the equity investment will be used to accelerate th company's expansion across the UK, taking advantage of a value retailer market that has seen a significant upswing in recent years.

Supermarkets such as Aldi and Lidl have had great success in their UK expansion since the global financial crisis, with discount store operators opening twice as many outlets as the big four British supermarket groups in 2014 – not counting their convenience shops – according to figures from Local Data Company.

Poundworld Founder Christopher Edwards and his son will retain a minority stake in the business alongside management, following TPG's buyout.

The GP's play follows in the footsteps of fellow US giant Warburg Pincus, which acquired Poundworld competitor Poundland for around £200m in 2010.

Poundland was listed on the London Stock Exchange in February last year, and has performed well since the IPO. Two months ago it lodged a £55m bid for rival chain 99p Stores, which is currently being investigated by British competition authorities.

Company
Poundworld's history goes back to 1974, when Chris Edwards began trading from a market stall in Wakefield Market in Yorkshire. The company was founded under its current name in 2004.

Poundworld is a Normanton-based single-price retailer, selling all items in its shops for £1. Since 2013, the company has also operated multi-price chain Bargain Buys.

The retailer employs 6,000 people and has around 280 locations across the UK, a total it intends to double in the next five years.

People
TPG partner Abel Halpern led the deal for the GP. Christopher Edwards is the founder and CEO of Poundworld.

Advisors
Company – PwC, Dan Sheahan (Corporate finance); Squire Patton Boggs, Richard Hunt (Legal).

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• Topics
• Buyouts
• Consumer
• UK / Ireland
• United Kingdom
• TPG
• Warburg Pincus
• PricewaterhouseCoopers