As reported by Business News Australia, retail giant, Wesfarmers is set to buy online retailer, Catch, for a tidy sum of $230 million.
Subject to ACCC approval, the merger will see Wesfarmers venture into unfamiliar eCommerce, pure-play territory.
Under the deal, Catch Group will operate independently of Wesfarmers' other businesses – Bunnings, Target, Kmart and OfficeWorks – but will be overseen by Kmart Group MD, Ian Bailey.
Wesfarmers MD Rob Scott said the acquisition of Catch Group will help to accelerate the digital capabilities across the whole Wesfarmers business.
"Catch Group has a high calibre management team and a leading e-commerce platform with quality fulfilment assets.
"This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group's digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group."
Kmart Group MD, Ian Bailey said that the acquisition will see improved logistical capabilities for the entire business.
"We are excited to work with the Catch team and look forward to leveraging our capabilities to grow the business and accelerate the customer-driven, omni-channel initiatives across Kmart and Target.
"This will further drive best practice in supply chain, fulfilment and online execution across our brands, including opportunities for Target to secure online fulfilment capacity and productivity benefits.
"Catch will also benefit from the support of Kmart Group's scale and capabilities to drive its continued growth in its existing marketplace business," he said.