Poundland set to expand after private equity deal

The retailer, which sells all its products for 1, was bought in a deal thought to be worth some 200 million, although no figure was officially disclosed.

Previous majority owner and fellow buyout firm Advent International said the deal was "fantastic" for the business and its 7,000 employees, enabling further growth.

Pound stores have been among the biggest winners of the recession attracting cash-strapped consumers and able to expand by swooping on properties left vacant by failed retailers such as Woolworths.

West Midlands-based Poundland was founded in 1990 and is already Europe's largest single price discount retailer. It serves almost three million shoppers a week having trebled its customer base since being bought by Advent as part of a management buyout in 2002.

Since then it has increased from 70 stores to more than 260 across England, Scotland, Wales and Northern Ireland, creating more than 4,000 jobs.

In January, plans were laid out to open more than 50 branches this year and create a further 2,000 or so jobs.

It did not disclose how many of the new stores are likely be located in Scotland, where it operates about 30 outlets.

Chief executive Jim McCarthy said the business had "witnessed tremendous growth" under Advent's ownership.

"Through our partnership, focused around a very successful programme of new store openings, we have brought Poundland's 'Amazing Value' shopping experience to even more customers across the country," McCarthy said.

"This deal is great news for all of our customers, colleagues and suppliers and one that will support our ongoing growth plan."

Sales in the year to March rose by about a quarter to about 510m and the firm said it expects to generate revenues above 700m next year.

Poundland sells more than 3,000 lines including health and beauty items, household products and food.

Advent bought the retailer eight years ago for some 50m. It recently appointed Close Brothers to assess its strategic options for the business.

Warburg Pincus, which can trace its roots back to the creation of EM Warburg in the late 1930s, is one of the world's biggest and most active private equity houses. Last year, it bought a minority stake in Premier Foods, the maker of Hovis bread and Bisto gravy, among other popular brands.

The Poundland management team, led by McCarthy, will retain a minority shareholding in the company.