TPG in £150-mn deal to acquire UK’s Poundworld single-price stores
15 May 2015
US private equity firm TPG yesterday struck a deal to acquire the UK's second-largest single-price store chain Poundworld.
The deal values the business, established by Edwards at a Wakefield market in 1974, at £150 million, which comes as investors battle for a slice of the fast-growing ''value'' market.
Former market stall trader Chris Edwards, who founded the business, and his family will net over £75 million after the sale of a majority stake in their Poundworld.
The family's first high street store was established in 2004.
Until Thursday, Edwards co-owned Poundworld together with his son Chris Junior and brother Laurence, which they built into the UK's second-largest single price retailer behind Poundland.
The group, which is also the owner of the Bargain Buys chain, made a profit of £6 million in the year to the end of March 2014, nearly double that of a year before. Sales were up 18 per cent to £345 million accounts filed at Companies House showed.
''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,'' Edwards said.
The deal would see Edwards and his son, Chris Edwards Junior, who had worked at the company since he was 15, become multi-millionaires overnight. They would both be expected to retain a minority stake in the business.
''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,'' Edwards added.
Poundworld has 2 million customers who buy from its 230 single-priced sites and 50 "Bargain Buys" sites, which sell 10,000 products including staples such as tea and coffee, luggage and garden furniture.
The Edwards family story was one of true entrepreneurship and hard work turning a market stall into one of the UK's fastest growing retailers, now employing over 6,000 people, PwC's Dan Sheahan, who worked on the deal told The Telegraph reported.
He added, having worked with the family for many years, PwC was proud to have helped them raise this investment with TPG Capital and was confident that Poundworld would continue its journey of growth, with the financial and operational backing of one of the world's biggest investors.
