Adairs will pull the settlement of its acquisition of online furniture firm Mocka forward by a year after the business performed well ahead of expectations.
The pureplay business blossomed in the last year due to the ongoing changes to consumer behaviour due to the Covid-19 pandemic – with online furniture and homewares having seen a huge spike in uptake.
Under a revised agreement revealed today, Adairs will pay $45 million in September 2021 to complete the transaction, which was previously set to be completed in September 2020. Mocka’s founders will remain within the business, though Adairs will appoint a new chief executive in August 2021.
According to Adairs chief executive Mark Ronan, the early settlement will enable the business to invest sooner in building Mocka’s potential over the next few years.
“This is a positive development for Adairs,” said Ronan.
“Mocka has performed ahead of the expectations we had of the business when we acquired it in December 2019. Since then, our understanding of and confidence in the potential of the business has continued to develop, especially the scope for substantial further growth in Australia.”