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US equity firm Warburg Pincus buys Poundland chain

5 May 10 10:19 GMT

Discount High Street retailer Poundland has been bought by an American firm for an estimated £200m.

The chain, based in Willenhall in the West Midlands, was bought by private equity firm Warburg Pincus.

Poundland was founded in 1990 and has about 260 stores across the UK. It has grown to become the biggest single price, discount retailer in Europe.

Its current owner Advent International said it was a "fantastic deal". The retailer employs 7,000 people.

Poundland's sales in the year to March rose by about a quarter to approximately £510m and the firm said it expected to generate revenues above £700m in 2011.

It charges £1 per item and sells a range of seasonal and household goods, health and beauty products, food and drink.

Poundland chief executive Jim McCarthy said: "This deal is great news for all of our customers, colleagues and suppliers and one that will support our ongoing growth plan."

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