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Big Retailers Take A Look At Jaycar’s Books $500M Deal Tipped

Several Australian retail groups, including at least two investment groups, are believed to be running a ruler over Sydney based  retail group Jaycar, among the interested parties is believed to be Wesfarmers, Harvey Norman and JB Hi Fi.

The business what is tipped to be worth between $500 and $600M is on the market following the death of founder and former long-time Canterbury Bulldogs sponsor Gary Johnstone who died last year aged 72.

The business that is highly successful selling house brand and selected brands such as Swann security products delivered a profit of $36M last year on revenues of over $200M.In 2019 the business invested $80M in a new warehouse automation system.

ChannelNews understands that Wesfarmers have been looking at it as a plug-in business for Bunnings who has been expanding into selling more home automation and house brand consumer electronics goods.

The Australian newspaper claims that the most logical acquirers are private equity firms Quadrant and BGH Capital or Bain Capital, who are believed to be interested in the expansion of Jaycar’ s online operation which according to sources has witnessed “exceptional growth” dung recent COVID lockdowns.

Quadrant has looked at Jaycar in the past.

BGH is cashed-up after recently raising $3.6bn through second fund.

The other interested group is believed to be automotive parts business Bapcor who like Quadrant have cast its eye over the company in the past.

ChannelNews is still waiting for an answer from Terry Smart the CEO at JB Hi Fi.

The company owns more than 110 stores across Australia and New Zealand and also sells products online in the UK and the US.

Barrenjoey Capital Partners is working on the sale.



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