Angling Direct Plc (LON: ANG) gained a boost during afternoon trading on Wednesday. This followed news that Angling Direct had bought Eric’s Angling Centre in a cash deal.
The deal was valued at £1.1 million as Angling Direct stampede their influence in the British Angling market.
Eric’s reported revenues of £5.2 million in 2018 and looks like a sound investment for Angling Direct.
After this purchase Angling Direct will own 31 stores in England, having stated that by the end of the financial year the target was 34 and this looks set to be achieved.
The fishing superstore have announced plans to rebrand and renovate many stores including the Farlows Lakes Store, whilst merging two stores in Leeds.
With these aims, there is a hope to accelerate the stores progress by consolidating the local retail selection.
Angling Direct’s Chief Executive Darren Bailly said “Erics is a premium business and that the company looks forward to welcoming its thousands of regular customers. Our strategy is to consolidate this highly fragmented market, delivering economies of scale and broadening our access to new customers through an increased retail footprint.”
Bailly also added “I also welcome the staff to the group. With their knowledge and experience, they are a valuable addition to Angling Direct and we will support them fully through the integration.”
Following the news of the acquisition, the share price of Angling Direct rose 2.52% higher, trading at 61p per share.
Eric’s angling own two stores in strong angling communities, and Angling Direct saw this opportunity to expand market dominance.
Steve Blow of Eric’s Angling commented on the move “It gives me great comfort to hand over the business, which I have assisted in building over the last 30 years, to Angling Direct”
Blow concluded “Whilst continuing to provide industry-leading products and excellent, reliable service, I believe Angling Direct will further enhance our customers’ retail experience. It has everything an angler could ask for, be it online or in-store.”
After operating for over thirty years, Eric’s saw this as potential to join forces with an angling superstore to widen customer base.