A popular online furniture retailer is taking over a home decor chain. Home24 products should also be available in the Butlers branches in the future. We have summarized the details for you here.
The online furniture retailer Home24 surprisingly takes over the home decoration chain Butlers. The “Handelsblatt” reports. The company valuation amounts to 70 million euros. This value can be corrected up or down by 15 million euros until June 2022, depending on the success. This variable was agreed because the development in stationary retail is very uncertain due to the pandemic.
Home24 takes over Butlers completely. The founder and head of the decoration chain Wilhelm Josten receives shares in Home24 in return for his Butlers shares. After the cartel is approved in the second quarter of 2022, the deal should be completed.
Home24 would also like to present furniture in stationary retail
With this step, Home24 would like to expand its brick-and-mortar business. Marc Appelhoff, CEO of Home24, says: “The ranges of Butlers and Home24 complement each other ideally. Together we create a comprehensive range from large pieces of furniture to accessories on the set table.”
This means that in the future, Home24 will integrate its own showrooms into the Butlers branches. The online furniture store already operates 10 of its own offline branches. The aim is to increase sales and strengthen your own market position.
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Takeovers of Butlers: Experts are critical of Home24’s move
Industry experts are critical of the merger. Gerrit Heinemann, professor of business administration and trade at the Niederrhein University of Applied Sciences, sees some problems: “Home24, which is not so used to success, obviously buys sales and a complementary range at favorable terms. The branches and franchise stores actually make no sense at all – especially not for the Home24 range – and in my opinion are accessories. ” The step is actually too late because of the corona crisis.
On the stock exchange, however, the takeover was initially well received. The Home24 share rose by five percentage points on the day of the announcement.