Gift and gadget retailer Menkind has announced it has acquired rival Hull-based consumer gadgets brand RED5.
Menkind intends to retain RED5’s existing nine stores, offices and warehouse, plus its 220 staff. RED5 also has four concessions in Hamley’s and Selfridges, in addition to a number of pop-up stores, and also sells products via its website.
The acquisition will see RED5 and Menkind both continuing to operate as separate brands with Menkind leading in the niche gifting space, and RED5 continuing to focus on gadgets.
At the end of the 2015 financial year, RED5 reported an 18% sales growth, a turnover of £18m and pre-tax net profits of £1.3m.
Founders Jonathan Elvidge and Joth Baron will remain actively involved in the business during the transition period, as consultants to the management team.
Jonathan Elvidge, Founding Director at RED5, said: “We are thrilled that Menkind has acquired RED5 - it was previously a competitor that we have had tremendous respect for and we are delighted to come together in this move. We feel this acquisition will help to cement the future success of the RED5 business and that both companies will benefit from additional support, resource, sector experience and expertise as a result.”
Paul Kraftman, Chief Executive and Founder at Menkind, said: “We are delighted to have acquired RED5, which has huge credentials within the gadgets arena, and until now was a main competitor of ours.
“Both Menkind and RED5 have distinctly different propositions and customer bases which each brand owns within its section of the market. Whilst RED5 tend to attract younger buyers, Menkind’s wider gifting range appeals to the more mature customer. We feel this acquisition is key to the continued growth of Menkind and anticipate it helping us to increase our market share and accelerate our expansion.
“Our vision is to be the brand leaders in our niche markets, increase our store portfolios in the UK and expand internationally. We feel with the acquisition of RED5 we can confidently achieve this with both brands.”
Menkind was featured in The Sunday Times ‘Fast Track 100’ league of the fastest growing private companies in the UK in 2010 and 2011. In 2015 the niche retailer reported a sales growth of 30%, a turnover of £35m and a net profit before tax of £3.4m.