JSM Financial: Private equity firm Warburg Pinkus agrees to buy UK retailer Poundland.

May 4, 2010 - PRLog -- In a deal that JSM Financial sources report to be worth around $305 million (£200 million), between two private equity firms, Warburg Pinkus is buying the British discount retailer Poundland from Advent International.

Whilst neither party was prepared to disclose the exact value of the deal, Warburg Pinkus has told reporters that it has acquired a majority stake while the Pounland management led by CEO Jim McCarthy retain a minority shareholding and will continue to run the business which sell more than 3,000 items all at the price of £1.

This deal is the latest in a string of private equity transactions in the UK’s retail sector in recent months.

Advent International acquired British sofa retailer DFS for around $759 million (£500 million) only weeks ago, while at roughly the same time Bridgepoint Capital bought art and craft retailer HobbyCraft for around $151 million (£100 million), JSM Financial research indicates.

According to Warburg Pinkus, the new acquisition is expected to generate revenue of more than $1,062 billion in 2011 from a UK value market of around $36.5 billion.

JSM Financial sources report that Poundland which currently employs more than 7,000 people trading from 260 stores plans to open an additional 50 stores before the end of 2011.

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