Is Jaycar Electronics eyeing an ownership change?

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Is Jaycar Electronics eyeing an ownership change?

- Australian Electronics retailer Jaycar acquisition
Image source: © Serg_velusceac | Megapixl.com

Highlights

  • Few media reports indicate a potential ownership change at Jaycar Electronics.
  • Jaycar is a well-known electronics retail chain in Australia and New Zealand.

Is the Australian electronics retailer, Jaycar, looking for a new owner? According to a handful of media, Jaycar has reportedly sought help from investment bankers like Barrenjoey Capital to attract potential buyers. The takeover or acquisition deal could be valued at over half a billion dollars.

However, Kalkine Media® could not independently verify this information.

Jaycar Electronics Acquisition

The electronic retail giant was founded by Mr Gary Johnston in 1981. However, after his sudden death in 2021, the retail business is currently being run by its management team. The company has over 110 stores spread across Australia and New Zealand, with a fast-growing e-commerce footprint.

As one of Australia’s well known retail electronics’ businesses, Jaycar may receive bids from leading retail houses. Reports claim that chain stores like Bunnings, Wesfarmers (ASX:WES), Super Retail Group and some overseas buyers may explore the potential acquisition. They added that a handful of private equity firms in and around Australia might also show interest.

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Is Jaycar’s business profitable?

The Australia-based electronic chain imports, distributes and sells electronic items like semiconductors, batteries, IT accessories, etc. Jaycar clocked USD an annual revenue of US$ 243.97 million in 2021, claims US-based business intelligence company Dun & Bradstreet on its official website.

Media reports, meanwhile, state Jaycar achieved a sale of AU$315 million in the financial year 2021, with a gross profit of AU$172.9 million.

If bought by any ASX-listed company, retail investors may get the opportunity to invest in the electronics business.

Speculations of a Jaycar’s takeover is rife in the market. However, the business sale has not been confirmed, nor has any official statement has been released by the organisation.

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