Homebase put up for sale by Australian owner

Wed, 04 Apr 2018 | BUSINESS SALE

High street DIY chain Homebase is up for sale, after its Australian owner has begun sounding out potential buyers just two years after its ill-fated acquisition of the firm.

Australian giant Wesfarmers bought Homebase in 2016 for £340 million, clearing out the retailer’s management team and overseeing a swathe of changes, but has since failed to turn the struggling chain around – much to the dismay of investors.

Poor performance saw Homebase announce it had lost £97 million in the second half of last year, prompting Wesfarmer’s to revalue its UK business at some £550 million cheaper.

It has been widely reported that Wesfarmers has been approaching potential buyers in the past few weeks, including private equity firms.

In February, investment house Lazard was appointed to conduct a strategic review of the Homebase business. Resulting plans would see up to 40 stores closed and around 2,000 jobs lost.

Rob Scott, the managing director of Wesfarmers, said at the time that he was “keeping all options open” for the Homebase business, including a potential sale.

The Australian firm, which has enjoyed success with its own DIY brand Bunnings, hoped to take on B&Q by bringing all of Homebase’s stores into line with its domestic brand. But by the end of Mach only 22 Homebase retail locations had been converted into Bunnings stores, with 227 unchanged and four closed for conversion.

Alongside trading losses, Homebase’s sales also kicked down 15.7 per cent to hit £517 million over the six months up to December 2017.

Wesfarmer’s directors said that “inconsistent store standards” and “poor execution” of its strategy were to blame for the poor performance. They also said that new product lines had not made up for lost sales from discontinued ranges.


Share this article



Latest Businesses for Sale

Commercial Vehicle Dealership
Wales, UK

Specialises in the sale of new commercial vehicles, along with offering a comprehensive range of associated vehicle servicing and maintenance solutions. Offers invited.

Asking Price: Offers Invited
Turnover: £15,100,000

FREEHOLD


Gym Equipment Supplier
UK Wide

Specialises in the provision of complete gym design solutions, ranging from the supply, installation, maintenance and servicing of premium and high-performance gym equipment. Offers invited.

Asking Price: Offers Invited
Turnover: £3,500,000

LEASEHOLD


Authentic Indian Foods Online Retailer
Bournemouth, Dorset, South West, UK

Busy on-line retailer that specialises in the sale of Authentic Indian Food, Indian Spices, Indian Sweets, Indian Cookware, Cooking Ingredients, and Recipes. Offers invited.

Asking Price: £289,999
Turnover: £800,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
19
 
Apr
 

Accountancy firm to expand in Scotland | BUSINESS SALE

A UK-based accountancy firm with offices peppered across the...

 
18
 
Apr
 

Recruitment firm acquires counterpart | BUSINESS SALE

Swindon-headquartered recruitment company Outsource UK has s...

 
17
 
Apr
 

Financial planning firm acquired by global counterpart | BUSINESS SALE

An independent financial advisory from Newcastle has been sn...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
10
 
Nov
 

BT to sell off its fleet division | DIVISION SALE

BT Group is preparing to sell its fleet management arm encom...

 
02
 
Feb
 

Sainsbury's puts forward £1.3bn offer for Argos owner | BUSINESS SALE

Sainsbury's has been circling the Home Retail Group, ow...

 
19
 
Jan
 

Homebase sold to Australian company Wesfarmers | BUSINESS SALE

Australian company Wesfarmers has agreed the purchase of the...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources