Is Homebase Up For Sale?

The Times has reported that Hilco Capital is in talks to sell Homebase.

Discount retail chains B&M and The Range were mentioned in the report as two of 'a number of parties' understood to have had discussions with Hilco.  Hilco, Homebase and B&M declined to comment when approached by The Times, while the owner of The Range said it "was not in active conversations currently”.

Hilco acquired the Homebase business from Wesfarmers, an Australian conglomerate, in May 2018, the latter having bought the business in January 2016. At the time, Rob Scott, MD of Wesfarmers, said that the investment in Homebase had been disappointing, commenting, “A divestment under the agreed terms is in the best interests of Wesfarmers’ shareholders and will support the ongoing reset and repositioning of the Homebase business.” 

The Times stated that insiders believe that the brand, IP and stores could be broken up, with one source telling the publication, “Hilco will have extracted the value it wants from Homebase and is now looking to exit.”

Hilco put Homebase up for sale in 2020 amid the pandemic, when home improvement retailers enjoyed a captive market of consumers who were able to redirect holiday and leisure spending towards home projects. In April 2021, Sky News reported that investment company Osmond Capital was putting together a takeover bid of £300m for the home improvement retailer, but nothing came of discussions.

Companies House data for the year ended 26th December 2021 shows EBITDA profit before exceptional items of £63.7m (2020, unaudited: £80.3m), with sales of £788.2m (2020, unaudited: £792.3m).  Accounts for HHGL Limited for the year ending 30th December 2022 are overdue by two months.

Recent Homebase news:

• Andy Coleman leaves Homebase
• Novuna and Homebase partner to provide flexible finance options
• Sales hotting up at Homebase 

Source : Originally reported in The Times

Image : shutterstock.com / RMC42 / 1157059060

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