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The discount retailer Poundworld has been sold to US private equity firm TPG for £150 million.

Poundworld is the second largest pound shop in the UK and began as a Wakefield market stall which was set up by Christopher Edwards in 1974. The family firm now has more than 280 outlets and 50 Bargain Buys shops which sells items at various prices.

The US acquisition will enable Poundworld to open new stores and also invest in distribution facilities. This will help when competing against rivals such as Poundland and the investment should, potentially, up their game.

Mr Edwards, 64, will retain a minority stake in the retailer with family members and other senior executives. From the sale, they stand to make millions. This sale follows Poundland’s £55 million purchase of another rival firm, 99p Stores, in February.

The Competition and Markets Authority said that consumers could end up with less choice because of the Poundland and 99p Stores merger. However unlike its rivals, Poundworld is the first single-priced UK retailer to offer online shopping, giving them a competitive advantage.