NORTH-EAST one-price retailer Poundzone has bought The Factory Shop Group.

The group was aquired from its management team and venture capitalists 3i and Bridgepoint for an undisclosed price.

With 17 stores, principally in the North-East and Yorkshire, Poundzone sells a variety of products which all retail at £1.

The business has grown rapidly since opening its first store in Houghton-le-Spring in Autumn 2001.

The Factory Shop Group, comprising 50 stores located in high profile positions in small towns throughout the UK, sells a wide selection of merchandise at discount prices. The product range includes clothing, footwear, giftware, homeware, kitchenware and electrical goods.

The management team will stay with the business, which is based in Keighley, West Yorkshire.

There is one Factory Shop store in the North-East region which is in Crook.

Poundzone director Bob Lister said: "We are delighted to have concluded the Factory Shop acquisition.

"The business has well-sited store locations, a broad product range and offers its customers tremendous value for money. The combination of all these factors was an attractive proposition to us."

Poundzone was advised by KPMG Corporate Finance who originated the transaction, and Mincoffs Solicitors.

Looking to the future, Bob Lister confirmed that The Factory Shop brand would remain, but changes would include sharper visual displays.

He said: "The Factory Shop has been trading extremely well and little change is planned, but we do bring complementary buying skills to the group and will look to improve further the value for money product offering in the stores."

The combined business will have a turnover of more than £50m and will continue to operate from its warehouses in North Tyneside and West Yorkshire.