Allens advised the Muir family on the sale of The Good Guys to JB Hi-Fi for $870 million
Electronics retailer JB Hi-Fi recently announced an $870 million takeover of its rival The Good Guys. The deal will be funded by a share issue worth approximately $394 million and $500 million in extra debt. Allens Linklaters advised the Muir family (which owns The Good Guys) on the sale.
The two businesses will continue to run independently, and The Good Guys will retain its current senior management and support offices. The Good Guys is also expected to get around $15 to $20 million in benefits from the combined firm’s increased scale.
Andrew Muir, executive chairman of The Good Guys, had only positive things to say about the transaction. “Joining forces with JB Hi-Fi makes enormous sense from every standpoint. Bringing these brands under common ownership will combine the skill and expertise of two of Australia’s most respected retailers. The combined company will have the scale and resources to realise the growth aspirations and potential of both brands,” he said.
The Allens team was led by corporate partners Jon Webster and Robert Pick, as well as senior associate Georgie Korman. The Allens team included lawyers from across the firm, including the competition team (led by Ted Hill) and the banking and finance team (led by Warwick Newell).
Richard Murray, chief executive officer of JB Hi-Fi, said that the acquisition would accelerate JB Hi-Fi’s push into the whitegoods sector. "The acquisition is a very attractive strategic opportunity for JB Hi-Fi since The Good Guys is a highly complementary business which is aligned with our management philosophy and significantly enhances our offering in the $4.6 billion home appliances market".
The Good Guys is a specialty retailer of household appliances and consumer electronic goods with annual sales of approximately $2 billion. The company was founded by Ian Muir and grew from a single store in suburban Melbourne to become one of the most successful retail brands in Australia.
By Michael Mata
The two businesses will continue to run independently, and The Good Guys will retain its current senior management and support offices. The Good Guys is also expected to get around $15 to $20 million in benefits from the combined firm’s increased scale.
Andrew Muir, executive chairman of The Good Guys, had only positive things to say about the transaction. “Joining forces with JB Hi-Fi makes enormous sense from every standpoint. Bringing these brands under common ownership will combine the skill and expertise of two of Australia’s most respected retailers. The combined company will have the scale and resources to realise the growth aspirations and potential of both brands,” he said.
The Allens team was led by corporate partners Jon Webster and Robert Pick, as well as senior associate Georgie Korman. The Allens team included lawyers from across the firm, including the competition team (led by Ted Hill) and the banking and finance team (led by Warwick Newell).
Richard Murray, chief executive officer of JB Hi-Fi, said that the acquisition would accelerate JB Hi-Fi’s push into the whitegoods sector. "The acquisition is a very attractive strategic opportunity for JB Hi-Fi since The Good Guys is a highly complementary business which is aligned with our management philosophy and significantly enhances our offering in the $4.6 billion home appliances market".
The Good Guys is a specialty retailer of household appliances and consumer electronic goods with annual sales of approximately $2 billion. The company was founded by Ian Muir and grew from a single store in suburban Melbourne to become one of the most successful retail brands in Australia.
By Michael Mata
