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Category: Takeovers / Retail / Electronics

JB Hi-Fi to pay $870m in Good Guys takeover

Tuesday, 13 Sep 2016 06:58:34 | Michael Janda

JB Hi-Fi said it expects to save up to $20 million a year by taking over The Good Guys. (ABC News: Nic MacBean)

Electronics retailer JB Hi-Fi has announced an $870 million takeover of rival firm The Good Guys.

The deal will be funded by a share issue worth around $394 million and $500 million in extra debt.

JB Hi-Fi said the two businesses will continue to run independently, with The Good Guys retaining its current senior management and support offices, although it expects to get around $15-20 million in benefits from the combined firm's increased scale.

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

"The acquisition is a very attractive strategic opportunity for JB Hi-Fi since The Good Guys is a highly complementary business which is aligned with our management philosophy and significantly enhances our offering in the $4.6 billion home appliances market," he noted in a statement.

The proposed deal already has approval from the competition watchdog and is expected to be completed late this year or early next.

JB Hi-Fi also released sales figures for the first two months of trading in the new financial year.

The numbers showed year-to-date sales growth of 11.6 per cent, much stronger than the same period last year, which the company said was largely attributable to the closure of electronics rival Dick Smith earlier this year.

More to come.

AustraliaPlus


 

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