ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Guys.
The takeover brings together two of Australia's largest electronics retailers and accelerates JB Hi-Fi's move into the whitegoods market.
Announced in September, the deal will see JB Hi-Fi's network increase to 295 stores across Australia and New Zealand.
JB Hi-Fi CEO Richard Murray says the acquisition has cemented the chain's position.
"We are very pleased to have successfully completed the acquisition of The Good Guys and are excited about creating a market leading consumer electronics and home appliance retail group," says Murray.
The Good Guys, founded in 1952, has a network of 101 stores across Australia.
In the 12 months to 30 June, the business had $2.09 billion revenue and an EBIT of $74.2 million.
The entire home appliances category is worth $4.6 billion annually, making the Good Guys a clear market leader in this area. JB Hi-Fi had already made a move into this market, under the JB Hi-Fi Home brand.
The Good Guys CEO, Michael Ford, will continue in the role under the new ownership, alongside the existing management of the business.
It is expected the acquisition will deliver net synergies of $15-20 million over the three-year integration period through buying, logistics and supply chain efficiencies.
Costs associated with bringing the two businesses together will be between $10-12 million in the first year post completion.
Under the deal, The Good Guys will continue to operate as an independent brand with, CEO Michael Ford reporting to Murray.
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