Poundland set for £600m sale

Booming budget store Poundland may be sold off early next year by its owner to cash in on its success.

Poundland

The Willenhall-based retailer has more than 450 stores and is valued at up to £600 million.

Private equity group Warburg Pincus, which bought Poundland for £200m in 2010, is reported to be looking at a sale or floating the business.

Warburg Pincus and Poundland are not commenting at this stage.

The chain, which is led by chief executive Jim McCarthy, has been expanding at the rate of 60 new stores a year.

It was bought by Advent International for £50m in 2002 and they sold it on to Warburg Pincus eight years later.

The first Poundland store was opened in 1990 and it made a £31.7m profit in 2011/12. It aims to reach 500 stores and £1 billion turnover next year. It created 2,000 jobs in 2012 with another 2,000 predicted this year, taking the total staff to 14,000.