Joules is broadening its non-fashion business with the acquisition of online furniture, homewares, garden accessories and lighting shop The Garden Trading Company.
The Leicestershire-based fashion brand is spending around £12.5 million on the business which it says sells products “inspired by the British countryside and lifestyle trends”.
Joules has been expanding its non-clothes ranges in recent years on the back of its solid reputation, launching more furniture lines including sofas with DFS, as well as toiletries with Boots and spectacles through stockists such as Vision Express.
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Garden Trading designs its own home, garden and outdoor products, which it sells on its website and through more than 1,000 海角视频 stockists. Its products are also sold on the Friends of Joules website.
It saw turnover rise 40 per cent to £16.8 million last year with pre-tax profits of £2 million.
Joules said Garden Trading had a “close cultural alignment” with it, and both shared the same “design-led approach to creating distinctive, quality products”.
Joules said it was paying £9 million upfront – subject to adjustments – made up of £4.5 million in cash and 2.83 million new Joules ordinary shares.
There will also be a deferred payment of up to £3.5 million, made up of at least £3 million in cash and the rest either in cash or ordinary shares – subject to Garden Trading meeting certain targets between now and November 30.
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Joules chief executive Nick Jones said it was a great deal and shares in the company were up around 6 per cent first thing today at £1.70.
He 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 the year.
Mr Holloway said: “We are delighted to be joining Joules, which is a business and brand I have long admired.
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“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.”
Joules said it will continue to develop and grow the brand and product range and use its design and sourcing strengths to develop a broader range of Joules-branded home, garden and outdoor products.