Law firm Shoosmiths has advised Poundland on all real estate matters on its £55 million acquisition of 99p Stores.
The deal follows approval from the Competition and Markets Authority and includes 99p Stores’ network of over 250 stores, which serves more than two million customers a week.
Poundland paid £47.5 million in cash plus £7.5 million in new shares. The deal has been partly funded by a share placing.
Poundland, Europe’s largest single price general merchandise value retailer, has opened more than 650 stores in the UK, Republic of Ireland and Spain since 1990 - trading in the latter two countries under the Dealz brand.
Family-run 99p Stores was founded in 2001 by Nadir Lalani, on a single site in Holloway, north London, and has grown to become the UK’s second-largest single price point retailer.
The Shoosmiths team was led by real estate partner, Beth McArdle who advised on work relating to 99p stores’ warehouse and distribution centre which Poundland is taking over as part of the deal and real estate advice regarding the 250 stores. Ms McArdle was supported by real estate and real estate litigation lawyers in the national team and the Edinburgh real estate team provided advice on Scottish elements of the deal.
Jinder Jhuti, general counsel and company secretary for Poundland, said: “Beth and the team at Shoosmiths have done an exceptional job of advising us on all real estate matters in this very lengthy and complex deal.
“This is a good deal for both businesses and will benefit customers and shareholders alike.
“Through working together, Poundland will improve choice, value and service for 99p Stores’ customers.”
Ms McArdle added: “It has been a pleasure to have advised our long standing client, Poundland, on all real estate aspects of this historic deal.
“Our real estate offering at Shoosmiths is booming and our clients tell us this is based on our full service real estate expertise and our exceptional client care.
“This deal will see Poundland expand its footprint further, and we wish the company every success in the future.”
The team worked closely with Poundland’s other main legal adviser, Freshfields Bruckhaus Deringer, who advised on the corporate aspects of the transaction.