Linen and homeware retailer Adairs has entered into a binding agreement to acquire online retailer Mocka for NZ$80m ($52m).
Established in 2007, the family-owned Mocka operates in Australia and New Zealand, offering products in the home furniture and décor, kids and baby categories.
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The company also owns two distributions centres in Brisbane and Christchurch.
The centres will continue to provide dedicated support for the Mocka business.
The company will continue to run as an independent business under the leadership of the existing management team.
Adairs will fund the acquisition through a combination of its group term debt facilities and an issue of c.3.2 million ordinary Adairs shares to the vendors.
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By GlobalDataThe deal is expected to be concluded before the end of this month.
Adairs managing director and CEO Mark Ronan said: “Mocka is a highly complementary and attractive acquisition for Adairs.
“We have shared DNA in that we are both design-centric with in-house product design and development, which allows us to offer our customers high-quality, design-led, value for money, differentiated product.
“Importantly, this also means we have significant control of the vertical supply chain and in market pricing. Finally, we are each highly customer-centric organisations, with a passion for great service.”
