TIDMJOUL
RNS Number : 3984O
Joules Group plc
09 February 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION (EU) NO 596/2014
Joules Group plc
('Joules' or the 'Group')
Acquisition of Garden Trading
Joules, the premium British lifestyle brand, is pleased to
announce that it has acquired The Garden Trading Company Limited
("Garden Trading"), a digitally led retailer of home and garden
products inspired by the British countryside and lifestyle trends
(the "Acquisition").
Garden Trading designs its own range of distinctive home, garden
and outdoor products that it sells through its own digital platform
direct to consumers and to more than 1,000 stockists across the UK.
Garden Trading has seen rapid growth in its e-commerce revenue over
recent years as it has broadened its product range and increased
its customer base. Garden Trading has been a leading seller on the
Friends of Joules digital marketplace since Joules launched the
marketplace in 2019.
Strategic rationale
The Acquisition supports Joules' strategy to grow its customer
base, broaden its product offer and strengthen its digital
platform.
The Acquisition strengthens Joules' position in the important
and fast-growing home, garden & outdoor category. Garden
Trading has a close cultural alignment with Joules, and both share
the same design-led approach to creating distinctive, quality
products that are loved by their customers.
Joules intends to continue to develop and grow the Garden
Trading brand and product range whilst also seeing opportunity to
leverage Garden Trading's design and sourcing strengths to develop
a broader range of Joules-branded home, garden and outdoor
products.
For the year to 30 November 2020, Garden Trading delivered
revenue of GBP16.8 million, up more than 40% on the prior year, and
a profit before tax of GBP2.0 million(1) .
The acquisition is expected to be earnings accretive for Joules
FY22 financial year.
Transaction overview
The consideration for the Acquisition is split between an
upfront and a deferred element. The upfront consideration is for
GBP9 million subject to certain customary completion adjustments.
The upfront consideration is comprised of a GBP4.5 million cash
payment (on a cash free, debt free basis subject to a normalised
level of working capital) and 2.83 million new Joules ordinary
shares of 1 pence each ("Ordinary Shares")(2) . The deferred
consideration is for up to GBP3.5 million (of which at least GBP3
million will be paid in cash and the rest either in cash or
Ordinary Shares, at the Group's discretion), subject to Garden
Trading meeting certain targets over the period to 30 November
2021. Any Ordinary Shares issued pursuant to the Acquisition are
subject to certain customary lock-up and orderly market
arrangements.
Garden Trading's founder and Managing Director, Jon Holloway,
will remain with the business until the end of December 2021.
Nick Jones, CEO of Joules, commented : "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, commented: "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."
A conference call for analysts will be held at 8:30am this
morning. Please RSVP to joules@hudsonsandler.com for details.
(1) Unaudited financial information: For the year to 30 November
2020, Garden Trading delivered revenue of GBP16.8 million (FY19:
GBP11.9 million) and a profit before tax of GBP2.0 million (FY19:
GBP0.7 million). Garden Trading's gross assets as at 30 November
2020 were GBP8.0 million (30 November 2019: GBP4.8m).
(2) The number of Joules Group plc ordinary shares is based on
the 30 business day volume weighted average price to 5 February
2021 of GBP1.591
Enquiries:
Joules Group plc Tel: +44 (0) 1858 435 255
Nick Jones, CEO
Marc Dench, CFO
Peel Hunt LLP, Nominated Advisor Tel: +44 (0) 20 7418 8900
and Joint Broker
George Sellar
Andrew Clark
Will Bell
Liberum Capital Limited, Joint Broker Tel: +44 (0) 20 3100 2000
John Fishley
Edward Thomas
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796 4133
Alex Brennan
Lucy Wollam
Joules - a premium lifestyle brand with an authentic British
heritage
Joules is a premium lifestyle brand with an authentic heritage.
The Joules brand is about family, fun and joy in the countryside.
Joules creates and curates exceptional products that brighten the
lives of its customer, delivered through a leading digital platform
that is supported by enticing experiences and stores that are
located in desirable locations relevant to the Joules customer's
lifestyle.
The Joules story began in 1989, when Tom Joule started selling
clothing on a stand at a country show in Leicestershire. Today, the
business designs and sells Joules branded clothing, footwear and
accessories for women, men and children ... with collections of
homeware, toiletries, lifestyle and pet product ranges that are
carefully designed and developed through selected licensing
partnerships
Joules' distinctive design-led products are complemented by an
increasingly broad customer offer provided through its digital
marketplace Friends of Joules, enabling third party brands to offer
curated, complementary products to the Joules customer base,
enhancing Joules' digital platform with thousands of products from
hundreds of creative businesses to give customers everything they
could ever need for a contemporary country lifestyle.
The Joules brand caters to its 1.5 million active customers
through its own digital platform, its retail stores in the UK and
at country shows and events. Joules extends its brand reach through
well-established 3 (rd) party relationships - concessions, online
marketplaces and traditional wholesale - in the UK and
internationally.
Internationally, the brand has made good progress in its target
markets of the US and Germany, where the distinctive Joules brand
and products range resonate well with local customers.
International markets are served by wholesale partnerships and
dedicated Joules websites.
Joules' performance has been recognised through several awards
including:
- Mainstream Brand of the Year - Drapers Awards 2019, 2017 and 2016
- Best Licensed Fashion or Talent Brand Award - Brand & Lifestyle Licensing Awards 2019
- Best Licensed Gifting Product Award - Brand & Lifestyle Licensing Award 2019
- The Best Fashion Retailer (Mark of Excellence) - Retail Week Awards 2019 and 2018
- Fashion Retail Business of the Year (between GBP101m-GBP500m
turnover) - Drapers Awards 2018 and 2017
www.joules.com
www.joulesgroup.com
Garden Trading - fast facts
- Garden Trading was founded by Jon Holloway in 1994
- Initially focused on garden products, the business has
successfully expanded into lighting, homeware, indoor furniture and
kitchenware to meet the growing needs of their customers
- Design-led, in-house product development of own branded ranges
with a philosophy of combining simple, stunning design with high
quality outdoor products that would stand the test of time
- Sells through its website direct to consumers and to more than
1,000 stockists across the UK.
- More than 100,000 followers in Instagram with high levels of customer engagement
- Customer review rating of 4.6/5
- Amongst one of the first brands to be awarded Feefo's Platinum
Trusted Award, the highest award, which launched in 2020
- Headquartered in Oxfordshire
www.gardentrading.co.uk
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