Poundland to buy 99p stores
Poundland Group has signed a conditional sale and purchase agreement to acquire the Northampton-headquartered group for a cash consideration of £47.5m. Upon completion, the retailer will also issue new Poundland shares worth £7.5m.As well as 251 99p Stores and Family Bargains shops, the deal includes 99p Stores’ warehouse and distribution centre.Poundland chief executive Jim McCarthy said the combined group will provide better choice and value for its customers.”This is a good deal for both businesses and will benefit customers and shareholders,” he said.But the deal’s completion is subject to approval by the
Competition & Markets Authority (CMA) due to the size of the two groups. The CMA will review the transaction, but Poundland and 99p Stores revealed they have already been in discussions with the body.McCarthy added: “We believe that we can improve the performance of the 99p Stores estate and generate further value for Poundland’s shareholders. We look forward to working with the CMA as it undertakes its review.”The CMA will commence its review “shortly” and the process is expected to take about two months.
A statement from Poundland said: “Whether the acquisition is completed or not, the board is committed to its existing proven growth strategy of store rollout in the UK & Ireland and in the further development of its trial in Spain, which could lead to further expansion in continental Europe.”