Poundworld has announced an agreement under which TPG, a global private investment firm, will acquire a majority stake, understood to be for the sum of £150m, to support the founder-led Company as it enters the next chapter of its growth. Founder and CEO Christopher Edwards Sr, Chief Procurement Officer Christopher Edwards Jr. and other senior executives will retain a substantial minority equity position in the Company.
Founded in 1974, Poundworld is a key player in the fast-growing UK value retail sector, serving over two million customers weekly from over 280 sites across two distinct fascia. The Company‘s main brand, “Poundworld”, is the second largest single-price discount retailer in the UK and its multi-price discount brand, “Bargain Buys”, now trades from over 50 sites nationally.
TPG will inject new equity capital to fuel an accelerated store expansion program nation-wide, facilitate investments in new distribution facilities and deploy best in class retail practices supported by advanced data analytics. 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.
“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,” said Founder and CEO Christopher Edwards Sr. “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,” he added.
Abel Halpern, a partner at TPG 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. 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.”
The operational centre of Poundworld will 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.
The investment by TPG is funded with equity only and was completed on Thursday. No further financial terms of the transaction were disclosed.