Bunnings agrees on deal to acquire Beaumont Tiles

More than 60 years of family ownership will come to an end under a deal to sell the Adelaide-based company to the hardware giant.

Bob Beaumont plans to retire once a deal to sell Beaumont Tiles to Bunnings wins regulatory approval. Picture: Mark Cranitch.

Hardware giant Bunnings has agreed to acquire the country’s biggest tile retailer, Beaumont Tiles, for an undisclosed sum.

The deal, announced on Wednesday afternoon, is subject to several conditions, including ACCC and regulatory approvals.

Under the terms of the deal, the Beaumont brand and business would remain “separate and distinct”, similar to Bunnings’ takeover of Adelaide Tools last year.

From its Adelaide headquarters, Beaumont operates 117 stores nationally, with turnover, including franchise outlets, of about $270m.

While Bunnings carries a range of tile products in its warehouses, managing director Mike Schneider said Beaumont, which services both trade and consumer customers, offered specialised products and services that were not able to be offered through the Bunnings warehouse format.

“Beaumont Tiles has a strong management team in place and operates in a large, competitive category that has the opportunity for strong growth,” he said.

“The acquisition represents an opportunity to build on the success of the Beaumont Tiles business and invest in its future growth.”

Greeting card and travel goods retailer RJ Beaumont established Beaumont Tiles in 1960, after struggling to source quality tiles for his own house.

Under the leadership of RJ’s son Bob, the company has gone on to become one of South Australia’s most successful family-owned businesses.

Bob Beaumont, the company’s executive chairman, said it was time to retire after 53 years in the business.

“I knew that it would never be an easy thing to do, and it’s been a tough decision, but the board and I recognised the need for us to make way for a younger team,” he said.

“What made the decision easier, was knowing the brand and business we worked so hard to build from scratch would be placed in the best possible position for ongoing success and growth, and I’m really thrilled at the outcome.

“They (Bunnings) understand our brand and culture, and will look after our extended Beaumont family including our franchisees and our teams.

“The peace of mind in knowing Beaumonts will only continue to grow and build is fantastic, and I look forward to watching that journey and of course spending more time with my wife Sue, my family and friends.”

Beaumont’s current management team, led by chief executive Danny Casey, will remain in place if the deal proceeds, and the company’s national support office will continue to be based in Adelaide.

Earlier this month Beaumont explained how COVID-19 had delivered a major boost to the business as Australians continue to splurge on home furnishings.

The company will open its first store in Western Australia next month, with another 50 store openings across the country planned over the next five years.

Beaumont employs 360 people directly and, including the franchise network, that figure increases to about 900.