Joules acquires garden products firm in £12.5m deal
Market Harborough retailer Joules has bought The Garden Trading Company, a retailer of garden products, in a deal which is worth up to £12.5m.
Garden Trading designs its own range of home, garden and outdoor products that it sells online and through over 1,000 stockists across the UK. The firm has seen rapid growth in its e-commerce revenue over recent years and has been a leading seller on the Friends of Joules digital marketplace since Joules launched it in 2019.
For the year to 30 November 2020, Garden Trading posted revenues of £16.8m, up more than 40% on the prior year, and a profit before tax of £2m.
Joules will pay £9m upfront, made up of cash and shares. Up to £3.5m more will paid if Garden Trading hits performance targets over the period to the end of November.
Nick Jones, CEO of Joules, said: “We are delighted to announce the acquisition of Garden Trading, which is a fast-growing and highly complementary brand to Joules in the attractive home, garden & outdoor category. 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.”
Jon Holloway, founder of Garden Trading, said: “We are delighted to be joining Joules, which is a business and brand I have long admired. Since we started selling through the Friends of Joules digital marketplace more than a year ago it has become increasingly clear how well our products and brand resonate with the Joules customer base. In addition, by working with the Joules team it is clear that we share similar values, culture and customer-centric approach.
“I would like to take this opportunity to thank all my colleagues as well as our loyal customers who have helped to develop Garden Trading into the established and popular brand it is today. With the continued dedication of the Garden Trading team alongside the support and infrastructure that Joules offers, I am very confident in the growth opportunities ahead for the Garden Trading brand.”
