Homewares group Adairs will acquire omni-channel furniture retailer Focus on Furniture for $80 million, in a play to expand its market share in the furniture and bedding space.
According to Adairs, the team at Focus will continue to operate independently of Adairs and the business is expected to be earnings accretive immediately upon acquisition.
“This is an exciting and strategically significant development for the Adairs Group,” said group chief executive Mark Ronan.
“Focus builds out our product offering… and increases the exposure we have to that market by almost three times.
“Focus is led by a highly capable leadership group, and a passionate, service-oriented team in its stores, warehouses and support office. We are excited to welcome them to the Adairs Group family, and believe that together we can build a truly great business.”
Focus has a network of 23 stores, and commands a small but growing online channel, according to Adairs. The business saw revenue hit approximately $150 million in FY21.
All product design and development is done in-house in Melbourne, and the business targets ‘on-trend’ middle market consumers who largely focus on quality at a good price.
This is the second such acquisition Adairs has entered into in recent years, having fast-tracked its buy-up of online furniture firm Mocka earlier this year.
“Mocka has performed ahead of the expectations we had of the business when we acquired it in December 2019,” Ronan said.
“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.”