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09 Feb 2021 | 10:15

Joules buys Garden Trading for up to £12.5m

(Sharecast News) - Joules said on Tuesday that it has bought Garden Trading, a digitally-led retailer of home and garden products, for up to £12.5m. The clothing retailer said the acquisition supports its strategy to grow its customer base, broaden its product offer and strengthen its digital platform.

Garden Trading designs its own range of home, garden and outdoor products that it sells through its own digital platform direct to consumers and to more than 1,000 stockists across the UK. It has also been a "leading" seller on the Friends of Joules digital marketplace since the marketplace was launched in 2019.

For the year to 30 November 2020, Garden Trading delivered revenue of £16.8m, up more than 40% on the prior year, and pre-tax profit of £2m.

Joules, which expects the acquisition to be earnings accretive in the FY22 financial year, will pay an upfront consideration of £9m in cash and shares. There is also a deferred consideration of up to £3.5m, subject to Garden Trading meeting certain targets over the period to 30 November 2021.

Chief executive officer Nick Jones: "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.

"The Garden Trading brand shares similar design-led principles to Joules and, as has been demonstrated through its stand-out popularity on the Friends of Joules digital marketplace over the past 15 months, is highly relevant to our customers and their lifestyles."

At 1015 GMT, Joules shares were up 9.4% at 975p.
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