Value retailer Poundland has been bought by US private equity house Warburg Pincus.
Warburg Pincus has paid fellow private equity house Advent International around £200m for the 260-store business.
Advent paid around £50m for the business in 2002, and since then has almost quadrupled its store base to 260. It had recently appointed Close Brothers to advise on options for the business, but Warburg Pincus swooped before an auction could get under way.
The deal values Poundland at about 10 times EBITDA, which was £20m in the year to March 2009.
Poundland is headed by former Sainsbury’s convenience chief Jim McCarthy, and in the year to March secured sales of £510m, up by a quarter. It plans to pass the 300 store barrier over the next year.
Jim McCarthy, chief executive of Poundland, said: “Poundland has delivered amazing value to millions of customers for over 20 years. Our new partnership with Warburg Pincus will enable us to accelerate our growth plans and bring the single price proposition to even more customers throughout the UK. Poundland and Warburg Pincus both recognise the significant opportunities for future growth from increasing numbers of consumers who are seeking value for money whilst not compromising on quality.”