JB Hi-Fi may buy The Good Guys

JB HI-FI says it is in talks to purchase rival retailer The Good Guys in a move that could massively boost its store network.

The Good Guys no more?

JB HI-FI says it is in talks to purchase rival electronics retailer The Good Guys.

“JB Hi-Fi confirms that it is in preliminary discussions with The Good Guys in relation to a proposed sale of The Good Guys,” JB Hi-Fi chief executive Richard Murray said in a statement on Thursday.

“At this stage, discussions between JB Hi-Fi and The Good Guys are preliminary and exploratory in nature. JB Hi-Fi has made no decision nor has it entered into any agreement with respect to the acquisition of The Good Guys.”

JB Hi-Fi would need to raise the cash. Picture: Ric Frearson

The Good Guys, which operates around 100 stores across Australia and has annual turnover of around $2 billion, is currently considering a $900 million float on the stock market.

JB Hi-Fi, which has a market valuation of $2.3 billion, has annual revenues of $3.65 billion and nearly 190 stores.

Mr Murray said JB Hi-Fi would only pursue an acquisition if it made “compelling financial sense for our shareholders”.

The Good Guys was founded in 1952 in Melbourne’s northern suburbs as Ian Muir’s Radio & Electrical Centre, and is now one of Australia’s largest appliance retailers.