// Joules acquires digitally-led retailer Garden Trading for £9m
// Joules plans to develop & grow Garden Trading, and leverage it for Joules-branded home, garden & outdoor products
// Garden Trading recently posted full year profit before tax of £2m on the back of £16.8m revenue – a 40% increase
Joules has branched out into gardening and outdoor furniture after it announced the acquisition of digitally-led retailer Garden Trading for £9 million.
Garden Trading designs its own range of home, garden and outdoor products that it sells through its own digital platform direct to consumers and to more than 1000 stockists across the UK.
Joules’ takeover comes after Garden Trading enjoyed rapid growth in its ecommerce revenue over recent years as it has broadened its product range and increased its customer base.
For the year to November 30, Garden Trading posted profit before tax of £2 million on the back of £16.8 million in revenue, which was a 40 per cent year-on-year increase.
Garden Trading has also been a “leading seller” on the Friends of Joules digital marketplace since the latter launched the marketplace in 2019.
Joules said it plans to continue to develop and grow Garden Trading and its product range, as well as leverage its design and sourcing strengths to develop a broader range of Joules-branded home, garden and outdoor products.
“Garden Trading has a close cultural alignment with Joules, and both share the same design-led approach to creating distinctive, quality products that are loved by their customers,” Joules said in a statement announcing the acquisition.
The acquisition is split between an upfront and a deferred element.
The upfront consideration is for £9 million subject to certain customary completion adjustments, comprised of a £4.5 million cash payment and 2.83 million new Joules ordinary shares of 1 pence each.
The deferred consideration is for up to £3.5 million, of which at least £3 million will be paid in cash and the rest either in cash or ordinary shares, at the group’s discretion, subject to Garden Trading meeting certain targets over the period to November this year.
Garden Trading’s founder and managing director Jon Holloway will also remain with the business until the end of December this year.
Joules chief executive Nick Jones said: “The acquisition will help to increase the Joules customer base, broaden our product offering and strengthen our digital platform, which are three of the Group’s key strategic growth pillars.
“The Garden Trading brand shares similar design-led principles to Joules and, as has been demonstrated through its stand-out popularity on the Friends of Joules digital marketplace over the past 15 months, is highly relevant to our customers and their lifestyles.
“Garden Trading has a fantastic team and culture, which is closely aligned to Joules’. I am delighted to welcome Garden Trading’s team to the Joules family and look forward to working with them all over the coming years.”
Holloway said: “We are delighted to be joining Joules, which is a business and brand I have long admired.
“Since we started selling through the Friends of Joules digital marketplace more than a year ago it has become increasingly clear how well our products and brand resonate with the Joules customer base.
“In addition, by working with the Joules team it is clear that we share similar values, culture and customer-centric approach.”
He added: “With the continued dedication of the Garden Trading team alongside the support and infrastructure that Joules offers, I am very confident in the growth opportunities ahead for the Garden Trading brand.”