Wesfarmers catches Catch Group for $230 million

Company News

by Jessica Amir

Wesfarmers (ASX:WES) inked a deal to snap up Australian online retailer Catch Group Holdings $230 million cash.

For Wesfarmers it’s an opportunity to accelerate its e-commerce capabilities, as well as Kmart’s digital services.

The group says it will also give WES the opportunity to invest in the unique customer and supplier proposition provided by Catch Group.

For those that don’t know Catch Group connects users with retailers and the latest fashion, tech, beauty, grocery, sports deals online and on its app. Catch also allows users to pay for their goods using Zip (ASX:Z1P) and Afterpay (ASX:APT).

The purchase is subject to a number of conditions including approval by the ACCC (Australian Competition and Consumer Commission), which is expected in the coming months.

WES says the purchase will be funded with its existing debt facilities and it’s not expected to affect Wesfarmers’ existing credit ratings.

Shares Wesfarmers (ASX:WES) are trading 0.23 per cent higher at $38.65
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.