Poundland owner Advent International has sold the discount retailer to fellow private equity group Warburg Pincus.

The deal is thought  to be worth around £200m.

Advent has owned the chain since June 2002, when it led a management buyout. Since the deal, Poundland has grown its estate from 70 stores to 260 across the UK.

“We have enjoyed continued support and witnessed tremendous growth under Advent’s ownership,” said Poundland chief executive Jim McCarthy.

“This deal is great news for all of our customers, colleagues and suppliers and one that will support our ongoing growth plan.”

Advent managing director Tim Franks said the sale was a “fantastic deal for Poundland and its employees [which] recognises the long-term potential for this exciting brand”.

The news marks a second major move into the UK food and retail sector by Warburg in just over a year.

In March 2009, it acquired a 15.7% stake in Premier Foods for £99m.

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