The retail conglomerate – which also owns Bunnings and Officeworks – told the ASX today that Catch Group would operate as an independent business unit, under the oversight of Kmart Group managing director Ian Bailey.
“This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group’s digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group,” Wesfarmers managing director Rob Scott said.
“This will further drive best practice in supply chain, fulfilment and online execution across our brands, including opportunities for Target to secure online fulfilment capacity and productivity benefits.”
Catch Group managing director and CEO Nati Harpaz said the buyout would benefit Catch’s business partners and customers.
“Catch will continue to deliver innovation in the online market in Australia, with a focus on delivering great value and savings to our customers,” he added.
The acquisition is subject to a series of conditions and to the assessment of the Australian Competition and Consumer Commission, which will decide whether to give merger clearance.
The transaction is to be funded by Wesfarmers’ existing debt facilities.
– with AAP
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