Home furnishings retailer Dunelm Group PLC (LON:DNLM) has completed the £8.5mln acquisition of online garden and homeware retailer WS Group as it looks to boost its internet offering.
Dunelm told investors that it expects to more than double its online operations after agreeing the buyout of the group – which consists of the Worldstores, Kiddicare and Achica businesses.
“We are excited by this opportunity to accelerate the growth of our internet operation, more than doubling its size, and enhancing our position as the destination homewares retailer in the UK, both online and offline,” said Dunelm chief executive John Browett.
He added that Worldstore’s “unique platform for next day delivery and flash sales” will also strengthen Dunelm’s position in the UK homeware sector.
This isn’t the first time Kiddicare has been acquired by a household name after it was bought by supermarket chain Morrisons (LON:MRW) back in 2011 for £70mln.
It was sold on for just £2mln three years later, before being brought into WS Group from private equity a couple of years ago.
Worldstores – which employs 650 people – generates around £100mln in annualised revenues, although it is expected to incur a £5-10mln loss during the remainder of this financial year.
Dunelm is hopeful that the new addition will at least break even in the following 12 months – the first full year of ownership.
The Leicestershire-based firm isn’t the only high street retailer to announce an acquisition this morning, after JD Sports Fashion PLC (LON:JD.) confirmed it had agreed a deal to buy the Go Outdoors chain for £112mln.
Shares were up slightly by 5.5p on Monday morning to trade at 749p.