Published On : 2019-06-12
Wesfarmers an Australian conglomerate largely interested in Australian and New Zealand industrial and safety, coal mining, fertilizers, chemicals, and retail products, has signed the acquisition of Catch Group Holdings Limited, an Australian company that engages in e-commerce and online retail activities. The acquisition subject to completion of the transaction will be made with a cash consideration of $230 million. It complements the disciplined approach of Wesfarmers when it comes to capital allocation, which includes investment in prospects that are adjacent to the company’s current businesses. Moreover, it is in line with the company’s focus on investment in and development of its digital and data capabilities.
“We’re delighted to work with Catch Group and looking ahead to leverage our capabilities for growing the business and accelerating the omni-channel, customer-driven initiatives across Target and Kmart. This will drive further the best practice in online execution, fulfillment, and supply chain across our brands, along with opportunities for Target for securing benefits related to online fulfillment productivity and capacity. Catch Group will also be benefited from the support of Kmart’s capabilities and scale for driving its continued growth in its current marketplace businesses,” said Ian Bailey, MD of Kmart.
Catch Group will remain an independent business unit
Bailey will oversee Catch Group as it operates as an independent business unit once the acquisition is completed. Catch Group has developed a successful fast-growing and first-party marketplace business on the back of data capabilities and a leading technology platform, according to Bailey.
“Catch Group has a leading e-commerce platform and high-caliber management team with quality fulfillment assets. The acquisition represents an opportunity for accelerating e-commerce and digital capabilities of Kmart Group and Wesfarmers while continuing to make investment in the unique supplier and customer proposition provided by Catch Group,” said Rob Scott, MD of Wesfarmers.
According to Nati Harpaz, CEO and MD of Catch Group, the company was looking ahead to work with Kmart and become part of Wesfarmers for benefiting Catch Group’s customers and business partners.
“In Australia’s online market, Catch Group will continue to deliver innovation, with the focus of delivering great savings and value to our customers,” said Harpaz.
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