Adairs (ASX:ADH) - CEO & Managing Director, Mark Ronan
CEO & Managing Director, Mark Ronan
Source: Adairs
The Market Online - At The Bell

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.

ADH by the numbers
More From The Market Online

Week 13 Wrap: Easter bunny delivers new all time high for ASX200

Another week, another all time high. The ASX200 clocked 7,901pts on Thursday for the first time…
The Market Online Video

Market Close: Green lights up on ASX for Easter hunt go

The ASX200 closed the day in record territory - nearly a per cent up with every…

Market shrugs as Fisher & Paykel announces mass recall

Fisher & Paykel has initiated a voluntary limited recall of batches of Airvo 1 and my…
The Market Online Video

Market Update: ASX glows red hot with another hit record

The ASX200 is trading up, hitting a new high of 7901 point and eclipsing the last…