Steinhoff International strikes a bargain, snapping up Poundland for £597m
Poundland has been acquired by South African retail conglomerate Steinhoff International for half a billion pounds.
The cut-price retailer has accepted the £597m takeover approach from the company after rejecting an earlier bid in June. Poundland boasts 750 outlets across the UK and Ireland with a new fledged presence in Spain, bolstered by its 2015 acquisition of rival the 99p Store.
Darren Shapland, chairman of Poundland, said: "The Poundland board believes that Steinhoff's all-cash offer presents Poundland shareholders with an opportunity to realise their shareholding at a certain and attractive price."
Shapland said that the group gathered an “attractive price… against a background of increasing economic uncertainty in the UK and a more challenging trading environment”.
Steinhoff chief executive, Markus Jooste, said: “Steinhoff recognises the strength and value of the Poundland management team and anticipates that they will play a key role in the ongoing growth and development of Poundland as part of the Steinhoff group.
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“We look forward to welcoming Poundland employees to be part of one of Europe’s leading multi-format discount retailer.”
The deal works out at £2.22 per share for Poundland, attracting an all cash offer.