Wesfarmers Limited has entered into an agreement to acquire Homebase from Home Retail Group for £340 million (A$705 million). This follows the announcement on 14 January 2016 confirming that a conditional offer had been made to acquire Homebase.
Homebase is the second largest home improvement and garden retailer in the United Kingdom (UK) and Ireland. Homebase reported revenue of £1,461.2 million for the 12 months ended 29 August 2015 and currently has 265 stores.
Wesfarmers Managing Director Richard Goyder said the acquisition of Homebase provides a long-term
value creation opportunity for Bunnings which will complement the strong growth trajectory of the Australian
and New Zealand business.
“Bunnings is well placed to unlock value from the Homebase business and has a proven track record in
delivering growth both organically and through acquisition,” Mr Goyder said. “Our offer provides significant
execution certainty and an attractive cash consideration to Home Retail Group shareholders.
“The £38 billion UK home improvement and garden market is a large and growing market with strong
fundamentals. The opportunity to enter this attractive market through the acquisition of Homebase has
been comprehensively researched and carefully considered by Wesfarmers and Bunnings. The Bunnings
team has done a lot of work to make sure it understands the market and the opportunity, including having
visited hundreds of stores, spending significant time researching the market and closely studying
international retail expansions into the UK and other markets. Detailed due diligence has been completed
and implementation and improvement planning is well advanced.”
The acquisition is subject to approval by Home Retail Group shareholders under the UK Financial Conduct
Authority’s Listing Rules for Class 1 transactions. The Board of Home Retail Group has unanimously
recommended the transaction to shareholders. Subject to the approval of Home Retail Group shareholders
and its banking syndicate, transaction completion is expected by the end of the first quarter of calendar
Lazard is acting as Wesfarmers’ financial advisor.
Web Site : http://www.wesfarmers.com.au/news.html