Woolworths Acquires Ezibuy
Thursday, 22 August 2013
Commits to Further Growth and Investment
Woolworths Limited (Woolworths), parent company of New Zealand’s Progressive Enterprises, today announced that it will acquire EziBuy Holdings Limited (EziBuy) from founding shareholders Peter and Gerard Gillespie and Catalyst Investment Managers.
Progressive Enterprises currently employs more than 18,500 New Zealanders and together with Woolworths is proud to welcome an additional 500 EziBuy employees to the Group.
EziBuy is a leading direct-to-customer retailer of apparel and homewares in both New Zealand and Australia, operating primarily via an online platform, catalogues and contact centres. Currently 68 per cent of EziBuy’s sales are to the Australian market.
Woolworths is keen to invest in the next phase of EziBuy’s growth and also believes the combination of the two Companies will boost its own multi-option capabilities.
Penny Winn, Director of Group Retail Services for Woolworths, said: “EziBuy is a world class retailer that understands the importance of customer experience, convenience and service in direct-to-customer channels.
“With a history of profitable growth and more than NZ$200 million in sales over the past financial year and 550,000 loyal customers across Australia and New Zealand, the business has been an enormous success in its own right.
“We are very impressed with the calibre of the EziBuy business and we believe we can learn a lot from each other. The combination of our retail network, EziBuy’s direct selling expertise and our respective loyal customer bases will provide a unique competitive advantage.
“Woolworths is also seeking to learn from EziBuy’s direct-to-customer logistics at Palmerston North and apply these learnings more broadly across its business.”
EziBuy Chief Executive, Simon West, said: “We’re delighted to have the backing of Woolworths as we embark on the next phase of our growth. This business has come from humble beginnings to become a market leader in both Australia and New Zealand by providing convenience, quality and affordability. Further investment in mobile, customer insights and distribution will be priorities for us now as we move forward.”
The acquisition is valued at NZ$350 million and is subject to OIO approval.