The announcement yesterday to the NZSX by A&R Whitcoulls about their takeover of the Borders assets sheds some light on their plan:
A&R Whitcoulls Group Managing Director, Ian Draper, said that the Borders business is complementary to the Company’s existing assets, offering a different format from Angus & Robertson in Australia and Whitcoulls in NewZealand.
“Borders’ experience-based model invites customers to browse books,magazines, music and DVDs, with cafes in most stores. It’s a model which has proven popular in the local market, and targets a different demographic with its premium format and wide range of products.”
The transaction is valued at up to A$110 million and is expected to be finalised early next week.
“The acquisition creates a strategic footprint for the group which comprises different formats and provides a foundation for growth and innovation. We are pleased to bring these businesses together and excited about the opportunities presented by this transaction,” said Mr Draper.
“The combined experience, skills and scale of the enlarged Group will create a platform for an expanded and more diverse customer offering across a number of strong brands. The Borders management team have a demonstrated track record of innovation and will be able to make a valuable contribution to the development of the broader group”
Had newsagents established a newsagent owned public company commercial platform years ago as they had planned to do and had this been run on strict commercial terms, it could be newsagents making announcements of strategic expansion plans. Smart businesses operate multiple formats which seemingly compete yet cleverly support each other.
The A&R Whitcoulls acquisition of Borders means newsagents must revisit their business plans. I certainly am.