Bunnings buys Adelaide Tools
A 70-year-old Adelaide company will become part of Wesfarmers-owned Bunnings under an acquisition deal.
SA Business
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Wesfarmers-owned Bunnings is buying SA-based retailer Adelaide Tools for an undisclosed price.
The 1949-founded family-owned seller of branded high-end industrial tools is based out of Mile End and employs 50 staff, and will continue to trade under its own name.
It owns five retail stores, the Oaklands Mower Centre and online store, selling more than 8,000 products to mostly trade users.
Adelaide Tools director Rob Peach said the deal was a “good outcome” for the business, team and customers.
“This shows a vote of confidence in the South Australian retail market and is great recognition for the brand that we have built over the last 70 years, offering specialist advice range and service for our customers.
“We are also pleased that Bunnings intends to continue to run the business as Adelaide Tools.” Mr Peach, 72, and wife Marissa, 73, have both been hands-on in the business and will remain consultants with the business for three months to ensure a smooth transition.
“But they are both looking to pursue golf and fishing hobbies and spending time with their newly-arrived six-week old and 6-month old grandchildren,” Adam Peach, their son told The Advertiser.
Adam will be running the Adelaide Tools business as part of the Wesfarmers broader group. He did his apprenticeship with the business a couple of years ago before moving to UK to work for a family business that was in the same industry.
“This is my second stint with Adelaide Tools and I am looking forward to keeping it ‘business as usual’ for our company,” he said.
Bunnings managing director Mike Schneider described the acquisition as a “quality business”.
“The acquisition, which is subject to regulatory approval, will allow us to improve the way we connect, serve and engage with trade customers and is aligned with our strategy to accelerate the growth of the trade business,” he said.
The deal helps Bunnings gain “insight into the dynamics of the trade specialist market”.
“While our businesses are very different, we see strong alignment between the Adelaide Tools and Bunnings brands with both businesses having a strong focus on team, advice and service.
“We believe this acquisition will deliver even more choice and convenience for trade customers.”
The sale of the business comes weeks after Business SA highlighted about changes coming in for the South Australian economy, dominated by long-term small businesses.
“Change is in the wind, particularly as 45 per cent of respondents (to the latest Business SA-William Buck Survey of Business Expectations) said they would activate succession strategies to either sell or hand down their business within five years,” Business SA chief executive Martin Haese wrote in a column for The Advertiser.
“With such a high number of businesses changing hands, the business ownership landscape in SA could be significantly altered in the short-term. With an ageing population in SA comes an ageing generation of family business owners. It’s fantastic to see the younger generations stepping up, often when there can be significant pressure to carry on traditions.”