Joules is strengthening its position in the homewares and garden market, with the acquisition of digitally-led retailer The Garden Trading Company.
Garden Trading designs its own range of home, garden and outdoor products that are “inspired by the British countryside and lifestyle trend”, which it sells through its website direct to consumers and to more than 1,000 stockists across the UK. It has seen a rapid growth in its e-commerce revenue over recent years, with turnover up 40 per cent in the last year to £16.8 million and pre-tax profits of £2 million. It has also been a “leading seller” on the Friends of Joules digital marketplace.
The deal supports Joules’ strategy to grow its customer base, broaden its non-fashion product offer and strengthen its digital platform. The company says it plans to continue to develop and grow the Garden Trading brand and product range, whilst also leveraging its design and sourcing strengths to develop a broader range of Joules-branded home, garden and outdoor products.
The Acquisition is split between an upfront and a deferred element.
The upfront consideration is for £9 million (subject to adjustments), comprising a £4.5 million cash payment and 2.83 million new Joules ordinary shares of 1 pence each. The deferred payment is for up to £3.5 million, of which at least £3 million will be paid in cash and the rest either in cash or ordinary shares, at the group’s discretion, subject to Garden Trading meeting certain targets over the period to 30 November 2021.
Nick Jones, CEO of Joules, said: “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. Garden Trading has a fantastic team and culture, which is closely aligned to Joules’. I am delighted to welcome Garden Trading’s team to the Joules family and look forward to working with them all over the coming years.”
Garden Trading’s founder and Managing Director, Jon Holloway, will remain with the business until the end of December 2021.
Mr Holloway said: “We are delighted to be joining Joules, which is a business and brand I have long admired. Since we started selling through the Friends of Joules digital marketplace more than a year ago it has become increasingly clear how well our products and brand resonate with the Joules customer base. In addition, by working with the Joules team it is clear that we share similar values, culture and customer-centric approach.
“I would like to take this opportunity to thank all my colleagues as well as our loyal customers who have helped to develop Garden Trading into the established and popular brand it is today. With the continued dedication of the Garden Trading team alongside the support and infrastructure that Joules offers, I am very confident in the growth opportunities ahead for the Garden Trading brand.”
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