Poundland-owner Pepco’s boss says sale ‘almost inevitable’
The chief executive of Poundland-owner Pepco Group said it is “almost inevitable” the company will be sold, as the retailer updated the market on its strong Christmas trading last year.
Pepco Group boss Andy Bond said it is likely that its owner Steinhoff will sell the firm, adding he is “genuinely open minded” on the disposal options.
Steinhoff announced last year that it was mulling a range of strategic options for the business, including a potential public listing.
Three private equity firms are reportedly considering a bid for the company.
Advent International, Hellman & Friedman and Mid Europa Partners have teamed up for a potential offer for Pepco that could value the company at more than £3.83bn, Sky News reported.
“The restructuring arrangement that Steinhoff has with its creditors means it’s almost inevitable we’ll be sold,” Bond told Reuters, adding that he would aim to stay on to lead the business under new owners.
Bonds comments came as Pepco updated the market on its Christmas trading performance.
Group total revenue growth increased 13.3 per cent in the first quarter, with like-for-like sales growth of 3.9 per cent.
Poundland’s revenue was up 1.3 per cent on a like-for-like basis against a “weak consumer backdrop”. The budget store had a record trading day on 23 December, when it served almost 1.6m customers.
Bond said: “With an established strategy, leading customer proposition within a structurally advantaged discount retail segment and a strong financial base, we remain confident about our prospects for continued growth across Europe in the balance of the financial year and beyond.”