Fashion chain Joules has expanded its garden retail operations with the £12.5 million takeover of Garden Trading.
Shares in Joules jumped after the Leicestershire-based retailer revealed the acquisition of the home and garden product business.
Garden Trading designs furniture and other products which it sells through its digital platform direct to customers and through more than 1,000 stockists across the UK.
Joules said that Garden Trading has been a leading seller on its Friends of Joules online marketplace since it was launched in 2019.
It told investors that the move supports Joules’ strategy to grow its customer base and will strengthen its position in the fast-growing home, garden and outdoor category.
The company also said that it plans to use Garden Trading’s design and sourcing strengths to develop a broader range of Joules-branded home, garden and outdoor products.
Garden Trading grew revenues by more than 40% to £16.8 million for the year to November 30, with a pre-tax profit of £2 million.
Nick Jones, chief executive officer at Joules, said: “We are delighted to announce the acquisition of Garden Trading, which is a fast-growing and highly complementary brand to Joules in the attractive home, garden and outdoor category.
“The Garden Trading brand shares similar design-led principles to Joules and, as has been demonstrated through its stand-out popularity on the Friends of Joules digital marketplace over the past 15 months, is highly relevant to our customers and their lifestyles.
“Garden Trading has a fantastic team and culture, which is closely aligned to Joules’.”
Jon Holloway, founder of Garden Trading, said: “We are delighted to be joining Joules, which is a business and brand I have long admired.
“Since we started selling through the Friends of Joules digital marketplace more than a year ago it has become increasingly clear how well our products and brand resonate with the Joules customer base.”
Shares in Joules were 7.5% higher at 172.1p in early trading.