Bunnings’ Adelaide Tools acquisition targets tradie market

Bunnings is hoping a small Adelaide company will help provide the lessons it needs to conquer the tradie market.

Arborist Steve Slaughter outside Adelaide Tools at Mile End. Picture: Mark Brake

Hardware giant Bunnings has made a small bolt-on acquisition in South Australia as part of its strategy to attract more trade customers, entering into an agreement to acquire leading South Australian retailer, Adelaide Tools.

The price of the acquisition has not been disclosed.

Adelaide Tools is a 70-year-old family-owned and operated business serving trades and high-end DIY enthusiasts through five Adelaide stores located at Oaklands Mower Centre. It also has an online offering more than 8000 products.

Bunnings managing director Mike Schneider said Adelaide Tools was a quality business with a great team, premium brands and a reputation for great customer and after sales service.

“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,” Mr Schneider said.

“The business will continue to operate as Adelaide Tools and will give Bunnings 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.”

Adelaide Tools director Rob Peach said it was a good outcome for their 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,” he said. “We are also pleased that Bunnings intends to continue to run the business as Adelaide Tools.”

Since Wesfarmers demerged Coles late last year, Bunnings has become the major profit driver for the Perth-based conglomerate. For the fiscal 2019 year Bunnings posted an 8.1 per cent rise in full-year pre-tax earnings to $1.626 billion as revenue increased 5 per cent to $13.166 billion.