finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Wesfarmers to acquire UK retailer Homebase for £340 million

Posted: 19th January 2016 by
katinahristova
Share this article

Wesfarmers Limited (ASX: WES) (Wesfarmers) confirms it has made a conditional offer to acquire Homebase from Home Retail Group plc (LSE: HOME) for cash consideration of £340 million (A$699 million).Wesfarmers and Home Retail Group began discussions in September 2015 and due diligence work commenced under a confidentiality agreement in October 2015. An exclusivity agreement was signed in early December 2015 and confirmatory due diligence has now been completed. Transaction documentation is advanced and in the process of being finalised. There is no certainty the offer will lead to an agreed transaction.

Homebase is the second largest home improvement and garden retailer in the United Kingdom (UK) and Ireland, with 265 stores and reported revenue of £1,461.2 million for the 12 months ended 29 August 2015.

The strategic rationale for the acquisition is as follows:

• The UK home improvement and garden market is an attractive and growing market

• Homebase delivers an established and scalable platform with stores that are the right size for the UK market and support warehouse merchandising and a low cost operating model

• The acquisition would be the first step in a program which would invest in the Homebase team and reinvigorate core Homebase assets to build an exciting new Bunnings-branded business over three to five years

• The existing Homebase performance will be enhanced in the short-term through operational improvement The transaction will be subject, inter alia, to approval by Home Retail Group shareholders. Lazard is acting as Wesfarmers’ financial advisor.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram