Modern Marketing

Steinhoff International strikes a bargain, snapping up Poundland for £597m

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By John McCarthy | Media editor

July 13, 2016 | 3 min read

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."

Poundland

Poundland

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.

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