JB Hi-Fi announces Good Guys takeover worth $870m

Rick Owen
06:28, Sep 13, 2016
Copyright 2015 All rights reserved. This material can't be published, transferred, copied or redistributed.
Copyright 2015 All rights reserved. This material can't be published, transferred, copied or redistributed.

JB Hi-Fi's chief executive Richard Murray said the acquisition accelerates his company's push into the whitegoods sector.

JB Hi-Fi has entered an agreement to buy whitegoods retailer The Good Guys for $870 million.

A JB Hi-Fi deal with the Good Guys would form a business with sales of nearly $6 billion and nearly 300 stores.

JB Hi-Fi plans to open up new The Good Guys branded stores in "under represented catchment areas". The acquisition is expected to be completed by this year or early next year.

The electronics retailer says the two chains have "highly complementary customer bases and product offerings" and the deal strengthens JB Hi-Fi's presence in the A$4.6 billion home appliances market. "We are very pleased to welcome Michael and his executive team, and looking forward to working together to create a market-leading consumer electronics and home appliance retail group", he said.

Ford had previously expressed a preference for a share market float over a sale to JB Hi-Fi.

The two stores will maintain their separate brands and support offices.

Victim's letter to resonate long after Turner's release
SAN FRANCISCO (AP) - The young woman who was sexually assaulted by Brock Turner nearly didn't go out the night of the rape. She also voiced support for a pending legislative bill that would mandate prison for Turner's crimes.

Michael Ford, the well regarded chief executive of The Good Guys, had agreed to continue to lead the chain under JB Hi-Fi's ownership.

JB Hi-Fi expects the acquisition to deliver net synergies of $15-$20 million per annum after a three-year integration period, and boost earnings per share by 11.6 percent before transaction and implementation costs.

The acquisition announcement comes just weeks after the company tried to quell market speculation with a statement suggesting that, while it was in discussions with The Good Guys regarding a potential acquisition, the privately-held company was continuing to assess an IPO on the Australian Securities Exchange (ASX).

The takeover will be funded through a $349 million equity increase, along with $500 million raised from new and existing debt facilities, the Sydney Morning Herald reported.

JB Hi-Fi raked in $3.95 billion of revenue for the 2016 financial year, up 8.3 per cent from the previous year, while its big-name rival Dick Smith shut its doors.

The acquisition will make JB Hi-Fi Australia's leading whitegoods and appliances retailer, with a 29 per cent share of the $4.6 billion home appliances market, ahead of Harvey Norman's 24 per cent share.

Copyright 2015 All rights reserved. This material can't be published, transferred, copied or redistributed.


Popular

  • Jimmy Garoppolo helps Patriots beat Cardinals 23-21

    The Cardinals had a chance to win it but Chandler Catanzaro missed a 47-yard field goal with 41 seconds remaining. The Patriots won 23-21. "I thought it was bad initially but just gutted it out and was able to finish the game".
    Clinton blasts Trump on military generals, Putin

    Clinton blasts Trump on military generals, Putin

    Trump dodged each question, and the interview concluded with Trump going silent when asked how he feels about Mexican immigrants. He said he has a "very distinct plan" and knocked foreign policy under Obama, Hillary Clinton, and former president George W.
    Kerry proposes Houthi presence in Yemen unity government

    Kerry proposes Houthi presence in Yemen unity government

    The US has backed the coalition with multi-billion dollar arms sales and provided logistical and intelligence support. Be Civil - It's OK to have a difference in opinion but there's no need to be a jerk.
  • Australia nearing world record for growth

    Australia nearing world record for growth

    That was due to very weak (0.7 per cent) annual growth in hours worked and the slow 2.1 per cent rise in wages over the past year. Australia's net foreign debt liabilities increased $22.7 billion (two per cent) to a net liability position of $1,044.5 billion.

    Zika virus experts reveal horror disease may be spreading in TEARS

    Malaysia has also announced Zika cases, including a man from Sabah who died over the weekend because of health complications. In other words, the world has cause to remain concerned about the Zika virus.

    West Ham, Middlesbrough earn 1st wins in Premier League

    Arter was shown a second yellow card for a foul on Cheikhou Kouyate, but it was his first booking for dissent which irritated his manager.

  • Shanked kick? ESPN Fantasy football app crashes on NFL's big day

    At 11:01 a.m., the Twitter account of ESPN Fantasy Sports tweeted , "We are aware of the current technical difficulties". In an official statement, ESPN said, "We identified a backend data access issue and resolved as quickly as possible".

    Windies edge India by one run in record run blitz

    Still, even India's captain was largely positive after a match that was an ideal advertisement for cricket in the U.S. I always wanted to get that first one, that first win as captain", Braithwaite said.

    Bill Clinton accuses Federal Bureau of Investigation of serving up a 'load of bull'

    The conservative legal group Judicial Watch obtained the emails as part of its lawsuit against the State Department. Trump said it showed that under Clinton, "you pay, and you're getting things". "Very imp", the email said.
  • Canadian hiring bounces back, adds 26000 new jobs

    Canadian hiring bounces back, adds 26000 new jobs

    The decline came as a result of an increase in full-time employment - up 21,500 on a seasonally adjusted basis. The strong numbers suggest Canada is indeed seeing an economic rebound in the third quarter of this year.
    GM recalls 4M vehicles for air bag defect linked to 1 death

    GM recalls 4M vehicles for air bag defect linked to 1 death

    GM shared the data with Delphi, the auto parts and electronics supplier that provided the system, according to a NHTSA report. General Motors is recalling millions of vehicles to fix an air bag defect linked to at least one death.
    Mother Teresa: 'Saint of the gutters' canonized at Vatican

    Mother Teresa: 'Saint of the gutters' canonized at Vatican

    But in the case of Mother Teresa, this admiration for noble suffering seems to of been projected onto others. The daughter of a friend of mine was one of those privileged to carry a relic of Saint Teresa to the altar.

CONNECT