Joules buys digital retailer for up to £12.5m in bid to expand in booming homeware market
Joules has bought digital homeware retailer The Garden Trading Company for up to £12.5m, as it seeks to expand further into the thriving interiors market.
Garden Trading sells its own home, garden and outdoor product designs through its direct-to-consumer platform and through 1,000 stockists across the UK.
Joules said the acquisition will strengthen its position in the “important and fast-growing” home, garden and outdoor category, which has boomed during the pandemic while fashion retail has struggled.
In the year to 30 November 2020, Garden Trading reported revenue of £16.8m, a jump of more than 40 per cent compared to the previous year.
It also posted profit before tax of £2m.
The deal will be split between an upfront and deferred payments, with the first installment worth £9m.
The later payment is worth up to £3.5m and is subject to Garden Trading meeting certain targets in the year to 30 November this year.
Jon Holloway, Garden Trading’s founder and managing director, will remain with the business until the end of 2021.
Joules chief executive Nick Jones 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.”