Pepco was founded in 1999 as a branch of Brown & Jackson, in the same year it appeared in Poland. Already three years later, due to the poor financial results of the British network, it was sold to the South African Pepkor, hence the name Pepco, and later Pepkor was taken over by the German Steinhoff. This brand has achieved its success in Poland, but financial success cannot be said in the case of the British Pepco Group, or Poundland. For a long time it was a burden for the results of the group: Poland gave profits, and Poundland only consumed funds.
“It is expected that Due to the exclusion of poundland from the group, the transaction will improve the increase in the group's revenueswill increase profitability and margins, and will also affect the stronger generation of cash flows, which clearly reflects the concentration of increasing values for shareholders, “Pepco said.
The transaction, previously announced, met with moderate optimism of the stock exchange. Actions gain on Thursday, but only just over 1 percent.
Only one Pepco brand
The transaction is to be in line with the ambition to act in one Pepco formatfocused on higher margins, in the area of sales of clothing and articles of general purpose Pepco.
Last financial year, Biznes Poundland had 33 percent. Participation in the group's revenues, he generated 5 percent. EBITDA result.
“Pepco Group's decision to sell Poundland is based on the ambition to simplify the group structure and accelerate growth in the strongest categories and in the most important markets. This transaction will create a more transparent and more efficient business, enabling the group to focus on the group on development of the main Pepco brand, which generates the vast majority of the group's profits and the highest rates of return on capital ” – it was written.
“The transaction is a key, strategic step towards Departures from the FMCG goods categorywith simultaneous consideration possible disconnection from the group of a well -functioning Dealz Poland company in the medium periodwhich creates an even simpler structure, aimed at increasing the value for shareholders, “added.
Poundland currently employs around 16,000 employees in over 800 stores in Great Britain, on the island of MAN and in Ireland.
As stated, as part of the Gordon Brothers transactions, the Pepco and Poundland groups agreed to present a restructuring plan.
If the proposed restructuring is approved by the High Court, the Pepco Group expects to obtain a minority investment share in the Poundland group. Therefore, the Pepco and Gordon Brothers group have concluded an investment agreement that will regulate relations in relation to their interests in the Poundland group.
