Wesfarmers to acquire Catch Group Holdings
Australian conglomerate Wesfarmers Limited has announced an agreement to acquire online retailer Catch Group Holdings.
Catch Group are the owners of online retailers Catch of the Day. Wesfarmers, owner of department stores Target and Kmart, will pay AU$230mn (US$158.4mn) in cash for the company. In their 12 June press release, the company placed the purchase in line with its strategy of investing in opportunities adjacent to its existing businesses, as well as building its digital profile.
Wesfarmers Managing Director Rob Scott said: “Catch Group has a high calibre management team and a leading e-commerce platform with quality fulfilment assets. This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group’s digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group.”
The acquisition is subject to the usual conditions including approval by the Australian Competition and Consumer Commission merger clearance. Wesfarmers said the transaction was expected to close in the coming months.
“We are excited to work with the Catch team and look forward to leveraging our capabilities to grow the business and accelerate the customer-driven, omni-channel initiatives across Kmart and Target,” said Kmart Group Managing Director Ian Bailey. “This will further drive best practice in supply chain, fulfilment and online execution across our brands, including opportunities for Target to secure online fulfilment capacity and productivity benefits. Catch will also benefit from the support of Kmart Group’s scale and capabilities to drive its continued growth in its existing marketplace business.”