// Poundland owner Pepco Group is being eyed for a takeover by Advent International, Hellman & Friedman and Mid Europa Partners
// A £3.8bn takeover is reportedly likely
// Advent owned Poundland until 2010 when it offloaded the retailer for £200 million
Poundland’s former owner Advent International has reportedly teamed up with two rival private equity firms for a planned takeover that could value it at over €4.5 billion (£3.8 billion).
Advent offloaded Poundland for £200 million in 2010, and has now joined forces with Hellman & Friedman (H&F) and Mid Europa Partners to prepare the bid for the discount retailer’s parent company Pepco Group, Sky News has reported.
The consortium comprises Advent, H&F and Mid Europa is not certain to make a formal offer but is reportedly serious about its interest in Pepco Group.
- Poundland inches closer to stock market listing
- Poundland owner undergoes rename & keeps float or sale possibility open
The company, which not only owns Poundland but also Pepco and Dealz in more than a dozen Eastern European countries, has 2700 stores in total, with over 33,000 employees.
Pepco Group is now aiming to reach 4000 outlets to become Europe’s biggest discount variety retailer.
Chief executive Andy Bond, a former Asda chief executive, has said Pepco Group plans to open up to 300 shops each year, predominantly under the Pepco fascia.
Bond said last year that the renaming of the company from Pepkor Europe was an important step towards building greater recognition for its flagship brand.
Meanwhile, the interest shown from the Advent-led consortium in a takeover of Pepco Group provides an alternative to an IPO, which Steinhoff International, the current owner, has been exploring for months.
Steinhoff recently appointed Numis Securities to work alongside Goldman Sachs and JP Morgan on a listing.
If it does decide to float, it would mark a return to the equity markets for Poundland, which was taken private by Steinhoff in July 2016 in a deal worth just over £600 million.