Joules will pay an initial 9 million pounds ($12.4 million), and defer a final payment of up to 3.5 million pounds ($4.8 million), conditional on Garden Trading meeting certain targets in 2021. If all targets are met, the total value of the deal would be 12.5 million pounds ($17.2 million). The lifestyle brand said the acquisition will be earnings accretive for Joules in fiscal year 2022.
Garden Trading is an e-tailer and has been on the Friends of Joules digital marketplace since the platform launched in 2019. Founder John Holloway will remain at the helm through Dec. 31, 2021. Joules said Garden Trading posted a pre-tax profit of 2.0 million pounds ($2.8 million) and a revenue gain of over 40 percent to 16.8 million pounds ($23.2 million) for the year ended Nov. 30, 2020.
Joules said on Tuesday that it has a close cultural alignment with Garden Trading, and that both share the same design-led approach to creating distinctive and quality products loved by their customers.
Joules also said it intends to “continue to develop and grow the Garden Trading brand and product range,” and that it sees an opportunity to leverage its design and sourcing strengths to develop a broader range of Joules-branded home, garden and outdoor products.
“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,” Nick Jones, CEO of Joules, said. “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.”
“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,” Holloway said.
Joules is a premium lifestyle brand with a contemporary countryside aesthetic. Founded in 1989 by Tom Joule, the brand sells fashion, footwear and accessories for men, women and children, and over the years has expanded to homeware, toiletries, and pet products. The digital marketplace Friends of Joules offers a curated assortment from third-party brands.
Joules said its brand caters to 1.5 million active customers through its digital platform, retail stores in the U.K. and at country shows and events. Internationally, it has been growing sales in the U.S. and Germany via wholesale partnerships and Joules’ own dedicated websites.