Tue, 02 Feb 2016 | BUSINESS SALE
Sainsbury's has been circling the Home Retail Group, owner of Argos and Homebase, for some months now, but this week the company has put forward a fresh offer of £1.3 billion.
The firm's approach last year was rejected but undeterred, Sainsbury's put forward the £1.3 billion offer in a bid to gain control of the group once again. It looks as if the bid has now been successful with an initial agreement reached between the two companies.
Sainsbury's interest is being driven by expected savings by amalgamating Argos stores and supermarket sites. It is also anticipating some efficiencies to be made through selling its own clothing and homeware ranges through Argos.
Steve Clayton, head of equities research with Hargreaves Landsdown, commented on the bid, stating that it was indicative of “bold play” on the part of Sainsbury's.
He added: "It is looking to buy a struggling business when the supermarket itself is fighting strong headwinds.
"The takeover will be a considerable strain on management time when they already have quite a lot on their plate."
The £1.3 billion valuation figure is derived from the £1.2 billion which Sainsbury's would pay for equity in the company as well as a £200 million cost incurred for honouring an existing Home Retail agreement to return this money to shareholders after the sale of Homebase to Wesfarmers, an Australian firm, for £340 million.
View more businesses for sale.
Long established with strong brand identity. High Levels of repeat business. Continually expanding customer base. Offers invited.
Very High profile customer base. Framework agreement with world's leading elevator manufacturer. Outstanding track record . Exciting expansion opportunity. Offers invited.
For Further Information: All enquires including requests for a non-disclosure agreement (NDA), should be directed to the below together with Your Name, Registered Company Name and Contact Number: Unconditional offers together with proof of funds to b...
|
19
|
|
Jan
|
Luxury lodging group enters administration | ADMINISTRATION
An Essex-based company which operates eight luxury lodge par...
|
17
|
|
Jan
|
Fine paper business enters administration | ADMINISTRATION
Arjowiggins UK, which operates a number of trading companies...
|
15
|
|
Jan
|
Hawk Plant enters administration | ADMINISTRATION
The Shropshire company, that has previously undertaken landm...
Sign up to receive our acquisition alert emails to get your FREE guide
|
03
|
|
Feb
|
J Sainsbury's succeeds in buying Argos' owner | BUSINESS SALE
J Sainsbury's can celebrate now that it has secured Arg...
|
14
|
|
Jan
|
Homebase to be purchased by Wesfarmers | DIVISION SALE
Home Retail Group is nearing a sale of its DIY chain to Wesf...
|
06
|
|
Jan
|
Sainsbury's circles Argos and Homebase owner | BUSINESS SALE
Sainsbury's has made known its bid approach, an “...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources