THE TOWN’S 99p store could be bought out by rival budget shop Poundland in a £55 million deal.
A conditional agreement between the two firms would mean the Walford Walk store -next door to Debenham’s in the Kingfisher Shopping Centre – would be one of 251 shops to re-branded as part of the acquisition.
The decision was made after Poundland bosses said a combination of the two businesses would provide better choice, value and service for customers.
The transaction, which includes a cash consideration of £47.5 million and new Poundland Shares worth £7.5m, would also include all warehouses and distribution centres owned by 99p stores.
But the move is yet to have the final go-ahead by the Competition and Markets Authority.
When the two businesses are fully integrated, the proposed transaction is expected
to enhance earnings per share for Poundland’s shareholders.
Jim McCarthy, Chief Executive of Poundland, said: “This is a good deal for both businesses and will benefit customers and shareholders. Through working together, Poundland will improve choice, value and service for 99p Stores’ customers, bringing Poundland’s proven know-how and range to 99p Stores.
“We also 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.”
