The secondary-buy-out sees Poundland’s management retaining a minority stake in the business. Founded in 1990 and based in the West Midlands Poundland operates over 260 stores nationwide and is forecast to generate revenues in excess of £700 million next year.

Jim McCarthy, chief executive of Poundland, says that the new partnership will ‘enable us to accelerate our growth plans and bring the single price proposition to even more customers throughout the UK’.

The acquisition of Poundland is an all equity investment, fully funded from Warburg Pincus Private Equity, a $15 billion (£9.8 billion) global private equity fund.