9th Feb 2021 10:10
(Alliance News) -Â Joules Group PLC on Tuesday said it has bought the Garden Trading Co Ltd, a digitally-led retailer of home and garden products.
The consideration will comprise an upfront payment of GBP9 million, of which GBP4.5 million will be paid in cash and the remainder in 2.8 million Joules shares. The deferred consideration is for up to GBP3.5 million, of which at least GBP3 million will be paid in cash and the rest either in cash or shares, subject to Garden Trading meeting certain targets over the period to November 30, 2021.
Shares in country lifestyle retailer Joules were trading 9.4% higher at 175.00 pence in London on Tuesday.
The acquisition will support Joules' strategy to grow its customer base, broaden its product offer and strengthen its digital platform. The company noted that Garden Trading has been a leading seller on the Friends of Joules digital marketplace since Joules launched it in 2019.
For the year to November 30, Garden Trading delivered revenue of GBP16.8 million, up more than 40% on the prior year, and a pretax profit of GBP2.0 million.
"We are delighted to announce the acquisition of Garden Trading, which is a fast-growing and highly complementary brand to Joules in the attractive home, garden & outdoor category. The acquisition will help to increase the Joules customer base, broaden our product offering and strengthen our digital platform, which are three of the Group's key strategic growth pillars," said Joules Chief Executive Nick Jones.
By Lucy Heming;Â [email protected]
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