Join our daily newsletter At The Bell to receive exclusive market insights
- Adairs (ADH) agrees to purchase Focus on Furniture for an enterprise value of $80 million
- Operating in Australia, Focus is a strongly profitable furniture retailer which had more than $150 million in revenue in FY21
- This acquisition will increase Adairs exposure into the bulky furniture category and further develop it as a leading homewares and home furnishings retail group
- Of the $80 million purchase price, $74 million will be paid in cash with the remaining $6 million consisting of a placement of Adairs shares to Rob Santalucia, Focus’ CEO
- Adairs ends the day 4.09 per cent in the green with shares trading at $3.56
Adairs (ADH) has agreed to purchase Focus on Furniture for an enterprise value of $80 million.
Operating in Australia, Focus is a strongly profitable furniture retailer which had more than $150 million in revenue in FY21. It has a network of 23 stores and a small but growing online presence.
Focus will continue operating independently from Adairs with its management team to continue under new contracts.
This acquisition will increase Adairs’ exposure into the bulky furniture category and further develop it as a leading homewares and home furnishings retail group.
Of the $80 million purchase price, $74 million will be paid in cash with the remaining $6 million consisting of a placement of Adairs shares to Rob Santalucia, Focus’ CEO.
Adairs CEO and Managing Director Mark Ronan called the acquisition exciting.
“This is an exciting and strategically significant development for the Adairs Group. Focus builds out our product offering in the key area of home furniture and increases the exposure we have to that market by almost three times,” Mr Ronan commented.
“The Adairs Group now comprises a highly profitable and aligned portfolio of brands with significant growth potential targeting the middle market in the home category in Australia and New Zealand.”
“The acquisition will be earnings per share accretive from day one and we see strong growth opportunities that have the potential to drive sales of $250+ million over the next five years.”
Adairs has ended the day 4.09 per cent in the green with shares trading at $3.56 in a $578.5 million market cap.
