The Adairs Ltd (ASX: ADH) share price ended up in the green today after finalising its acquisition of Focus on Furniture.
Despite a dismal start to the day, Adairs shares were up 0.28% trading at $3.60 at the close of Wednesday's session. This compared favourably to the S&P/ASX 200 Index (ASX: XJO), which finished 0.28% lower.
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Why is the Adairs share price holding up?
Adairs announced the $80 million dollar deal to acquire Focus on Furniture last week. Investors appeared to welcome the acquisition news, with shares in the ASX home furnishings company up 4.1% on 25 November compared to the previous close.
The debt-free acquisition will see Adairs pay $74 million in cash alongside a $6 million share placement to Focus CEO, Rob Santalucia, who will remain at the helm of Focus.
Adairs noted it now owned and operated 3 vertically integrated brands in the home retail category — Adairs, Mocka and Focus on Furniture.
Focus brings to the mix 23 stores in Australia with a revenue of more than $150 million in FY 2021. The company boasted revenue of more than $150 million in FY2021.
Adairs already has 160 stores across Australia and New Zealand and added some 950,000 customers to its loyalty program Linen Lovers as of the end of the 2021 financial year.
Adairs share price snapsot
The Adairs share price has climbed 12.85% over the past 12 months, despite ongoing COVID-19 lockdowns which have impacted some companies in the retail sector. Adairs shares are up 5.57% year to date.
