JB Hi-Fi is broadening its product categories as it agrees to acquire a controlling interest in E&S Trading Co, which offers kitchen, laundry, and bathroom products.

The consumer electronics retailer agreed to an initial acquisition of 75 per cent of E&S for cash consideration of $47.8 million on a cash-free,debt-free basis. JB Hi-Fi has the option to buy the remaining 25 per cent in September 2029.

“E&S has a highly complementary premium product offering, which will appeal to a new customer base, and a commercial construction market focus, making it a strategically compelling addition to the JB Hi-Fi Group,” said Terry Smart, JB Hi-Fi’s CEO.

E&S has 10 showrooms in Victoria and online, and a showroom in ACT due to open this month.

Rob Sinclair, whose family founded E&S in 1962, will remain as the company’s MD after the acquisition.

“JB Hi-Fi’s deep understanding of the homemaker sector and extensive experience in the appliance industry make it an ideal partner for our business,” said Sinclair.

The acquisition announcement comes as JB Hi-Fi reports a decline in net profit and sales in the last fiscal year.

Its net profit fell 16.4 per cent to $438.8 million as sales eased 0.4 per cent to $9.6 billion in the year to June 30.

JB Hi-Fi Australia’s sales climbed 1 per cent to $6.61 billion while its New Zealand sales jumped 12.3 per cent to NZ$327.9 million.

However, The Good Guys’ home appliance chain’s sales fell 4.8 per cent to $2.68 billion.

The group’s earnings before interest and taxes slumped 15.8 per cent to $647.2 million.