Home > Industry > Wesfarmers Bought Catch For $230M – It’s Now Worth $1B

Wesfarmers Bought Catch For $230M – It’s Now Worth $1B

In June 2019 Wesfarmers purchased Catch Group – which owns the ecommerce site Catch.com.au – for $230 million. Now, analysts and fund managers have put Catch’s value at $1-1.5 billion.

“This business is worth much more than what it was acquired for and there remains a significant opportunity for further value creation,” JPMorgan Analyst Shaun Cousins told the Australian Financial Review.

Catch.com.au sells more than 2 million products online, across electronics, fashion, home and kitchen, pets, and grocery and liquor categories.

Cousins valued Catch at $1.23 billion. This is based on Catch’s gross transaction values increased by 68.7% in the first five months of the year, which built on the growth of 21.4% in the second half of 2019.

However, the analyst also noted a lack of disclosure about Catch’s earnings in Wesfarmers previous reports.

Looking ahead, Cousins forecasts Catch’s sales to expand by 18% over the year as a whole to total approximately $828 million. By 2022 he expects this figure to reach $910 million. “However, if the shift to online shopping continues at a similar pace these estimates could be conservative,” the Australian Financial Review wrote.

You may also like
Choice Retailers Scare Campaign, Lacks Substance & Key Details
CE Retailers Stocks Hit, Dollar Falls More Pain Tipped
Shaver Shop Profits Soaring
Retailers Look To Cancel Supplier Orders As Market Changes
Kmart Leverage OneDigital For Fast Delivery, Online Exclusives