JB Hi-Fi Group has entered into an agreement to acquire E&S Trading (e&s), an Australian-owned family business retailer specialising in kitchen, bathroom, and laundry appliances.
The initial acquisition is of 75% for cash consideration of $47.8 million on a cash-free/debt-free basis with a put and call option arrangement for the acquisition of the remaining 25% in September 2029.
Established in 1962 by the Sinclair family, e&s has 10 showrooms in Victoria, plus one showroom in ACT due to open in the coming weeks. e&s also has a commercial offering in Victoria servicing builders, developers and architects.
Under this agreement, the JB Hi-Fi Group expects to continue to grow e&s both in Victoria and nationally.
e&s reported revenue of circa $230 million and EBITDA of circa $7 million for FY24.
Commenting on the acquisition, JB Hi-Fi Group CEO, Terry Smart said, “e&s is a high-quality business that prides itself on offering the world’s leading kitchen, laundry and bathroom brands at great prices with expert advice and exceptional customer service.
“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 group.”
e&s managing director, Rob Sinclair said JB Hi-Fi’s investment in e&s demonstrates its confidence in the business model and the opportunity for strong future growth at the premium end of the sector.
“This partnership will allow us to expand our reach and continue delivering exceptional service and top-notch products to our valued customers,” he said.
e&s will retain both its brand and unique operating model and operations at all current stores will remain unchanged.
“It will be business as usual at all existing stores. Our customers can expect the same excellence they have come to know and trust. 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,” Sinclair added.
“e&s’ established reputation as an industry leader in the high-end appliance market will complement JB Hi-Fi Group’s existing businesses and bring a new premium offering to the JB Hi-Fi Group.”
Sinclair will continue as managing director of the e&s business, reporting to Smart.
The acquisition is subject to customary completion conditions and is expected to occur in September 2024.