|Poundworld Secures New Investment and Strategic Partnership with TPG|
Existing entrepreneurial drive, combined with fresh capital and retail experience to accelerate growth strategy
NORMANTON, England--(BUSINESS WIRE)--May 14, 2015-- Poundworld Retail Ltd ("Poundworld" or the "Company"), a leading value variety retailer in the United Kingdom, today announced an agreement under which TPG, a global private investment firm, will acquire a majority stake to support the founder-led Company as it enters the next chapter of its dynamic 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 leading 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 today. No further financial terms of the transaction were disclosed.
Poundworld and its shareholders were advised on the deal by PwC's corporate finance team in Yorkshire, led by director Dan Sheahan, with legal advice provided by Squire Patton Boggs in Leeds, led by corporate partner Richard Hunt.
Notes to Editors:
Poundworld is one of the UK's leading single-priced retailers with over 280 stores nationwide. The discounter started on a Wakefield market stall in 1974 and became Poundworld in 2004. The retailer based in Normanton, West Yorkshire now serves over two million customers per week and employs over 6,000 people. In 2013, Poundworld Retail Ltd launched multi-price brand Bargain Buys and now trades from over 50 locations nationwide. The company headed by Chris Edwards and son Chris Edwards Junior was recently the first single-priced retailer to start selling online with the launch of Poundworld Plus www.poundworldplus.co.uk[http://www.poundworldplus.co.uk]. Named one of the nation's fastest growing retailers in the Sunday Times Top Track 250 2014, the discounter plans to double its store network in the next five years.
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TPG is a leading global private investment firm founded in 1992 with over $67 billion of assets with offices in London, San Francisco, Fort Worth, New York, Beijing, Shanghai, Hong Kong, Mumbai, Singapore, Sao Paulo, Moscow, and Melbourne, among other locations. TPG has extensive experience with private and public company transactions in multiple sectors. The firm has recently invested in several UK based businesses including Prezzo, Victoria Plumb, TES Global and X2 Resources. TPG's current and past global retail and consumer investments include Burger King, Spirit Group, Mey Icki, Ontex, Bally, Ducati, Chobani, J Crew, Petco, Nieman Marcus, Savers and Lenta, among others.