By James Wells
MELBOURNE: Clive Peeters has acquired the former Betta Electrical store, Mornington Bulk, growing the publicly-listed retailer’s Melbourne metropolitan business to seven stores.
An eighth Clive Peeters store will be opened in Victoria later this month, when the retailer opens its first regional store in Mildura.
The Mornington store, which will become part of Clive Peeters from 3 May, is the sixth store to be announced since listing on the Australian Stock Exchange in September last year.
In a statement issued to the Australian Stock Exchange this morning, Clive Peeters managing director, Greg Smith, said the company indicated in its prospectus that surplus funds raised would be earmarked for acquisitions of this type.
“This store further accelerates the company’s store rollout program, and demonstrates the commitment of directors to expand into new geographic areas in an Australian wide expansion program,” said Smith in the statement.
“Trading in the Mornington store has been quite strong since the business was relocated into a new Homemaker Centre mid-2005.
“We are very pleased to acquire this business as the company has been looking at locations on the Mornington Peninsula and the former owners, the Oke Family, had developed the store in very similar style and presentation to the Clive Peeters stores.
“It is a credit to them that we expect to be able to manage with a seamless transition, with only signage changes and minimal capital works, to transform the Mornington store into a new Clive Peeters store. This opportunity was too good to miss," he said.
In a statement sent to suppliers on Monday, Smith said he was very happy with the acquisition.
“We are of course delighted to have secured this first class store, which provides further momentum for our expansion plans,” he said.
Shares in Clive Peeters, which opened on Monday at $1.32 on Monday, closed one cent lower at $1.31 after the announcement.
Smith was unavailable for comment today.