Poundland in the running to be sold by US buyout backers

Michael Bow
Follow Michael
US PRIVATE equity group Warburg Pincus is understood to be mulling plans to offload UK budget retailer Poundland for up to £600m, three years after it snapped up the firm.

Warburg Pincus, founded by Eric Warburg, scion of the Warburg banking family more than 40 years ago, snapped up the 410-store group in 2010 in a secondary buyout from fellow private equity outfit Advent International for £200m.

It is understood Warburg is eyeing an auction or possible trade sale for the company, with £600m as a guide price.

Poundland, which has about 14,000 staff, has so far defied the retail ravages of the high street, after making underlying operating profits of £40.1m for the 2011-12 period.

It hit £780m turnover last year and has laid ambitious plans to grow its stores from over 400 to 1,000 over ten years.