After months of speculation, JB Hi-Fi
(ASX:JBH) has finally entered a deal to purchase electronics retail chain, The Good Guys, for $870 million.
This acquisition is expected to complete in either late 2016 or early 2017, and will increase JB Hi-Fi’s footprint to a total combined 295 stores across Australia and New Zealand.
It’s also been confirmed that Michael Ford, the CEO of The Good Guys, will continue in that role under the new ownership of JB Hi-Fi.
JB Hi-Fi estimates this acquisition will deliver net synergies to the combined business of $15 million to $20 million each year, after a 3-year integration period (excluding one-off implementation costs).
JB Hi-Fi reported a net profit of $152.2 million at 30 June 2016.
