BUTLERS Acquisition: Key Details, Impact, and What Comes Next

Home24's acquisition of BUTLERS marks a significant step in the home furnishings industry. By integrating BUTLERS' extensive retail network and product range, Home24 enhances its market presence and diversifies its offerings. This strategic move not only expands Home24's reach but also strengthens its position as a leading player in the European home & living sector.

What Is BUTLERS?

Founded in 1999, BUTLERS specializes in home decor and accessories, offering a wide range of products including decorations, tableware, and garden furniture. The brand stands out for its stylish and carefully curated items that cater to various personal styles and trends, such as Skandi-Chic and Boho-Look. BUTLERS' products are available both in physical stores and online through home24, ensuring accessibility and convenience for customers seeking trendy and high-quality home decor at affordable prices.

Who Acquired BUTLERS?

Home24 is a prominent online furniture retailer known for its extensive range of home furnishings and decor items. The company offers a variety of products, including sofas, beds, garden furniture, lamps, and home accessories. Home24 stands out in the market with its focus on customer convenience, providing services like free returns, a 30-day return policy, and multiple payment options. With over 500,000 products and a high customer rating, Home24 maintains a strong position in the online furniture retail industry.

When Was BUTLERS Acquired?

Home24 completed the acquisition of BUTLERS on April 1, 2022. This strategic move came at a time when the home furnishings industry was experiencing significant shifts due to the COVID-19 pandemic. The acquisition allowed Home24 to enhance its private label expertise and expand its market reach, aligning with the broader trend of consolidation in the retail sector. The integration of BUTLERS' extensive product range and retail network into Home24's platform marked a pivotal moment for both companies.

Why Was BUTLERS Acquired?

• Market Expansion: The acquisition of BUTLERS allows Home24 to significantly expand its market presence. With 100 BUTLERS stores in the DACH region and 32 more across Europe, Home24 gains access to around 40 million visitors annually. This move diversifies Home24's product offerings and strengthens its foothold in both online and offline retail sectors.
• Technology Integration: Home24 benefits from integrating BUTLERS' product assortment into its platform, enabling customers to purchase BUTLERS products directly from Home24's online store. This seamless integration enhances the customer experience and leverages Home24's existing e-commerce infrastructure to boost sales.
• Competitive Advantage: The acquisition enhances Home24's private label expertise, particularly in home textiles, decorations, and tableware. By combining BUTLERS' innovative product range with Home24's extensive market reach, the company strengthens its position against competitors. Additionally, the integration of BUTLERS stores with Home24 showrooms, as seen in Berlin, offers a unique shopping experience that blends online and offline retail.

Acquisition Terms

• Acquisition Price: The total acquisition price is €70 million. This includes a fixed purchase price of approximately €38 million for 74.8% of the shares, with an additional earn-out amount of up to €21 million contingent on achieving a target EBITDA value within a 12-month reference period.
• Payment Method: The transaction was primarily conducted in cash and cash equivalents. A portion of the payment, approximately €11 million, is deferred for 36 months. Additionally, 25.2% of the shares in Butlers were exchanged for new shares in Home24 SE.
• Key Conditions or Agreements:
  • The acquisition was subject to antitrust clearance, which was approved by authorities in Germany and Austria.
  • Wilhelm Josten, the founder of Butlers, will receive new shares in Home24 SE in exchange for his 25.2% stake in Butlers.
  • Wilhelm Josten is entitled to compensation if the price of Home24 SE shares does not average above €18 for at least three calendar months in 2026, with a maximum compensation of €5.55 per newly issued Home24 SE share.
  • The transaction was completed on April 4, 2022.

Impact on BUTLERS

The acquisition of BUTLERS by Home24 has led to several operational changes. Home24 has integrated BUTLERS' product assortment into its platform, enhancing its offerings with household goods, table decorations, and home textiles. The first BUTLERS store with an integrated Home24 showroom has opened in Berlin, marking a significant step in blending online and offline retail experiences. While there have been no explicit changes in management, the strategic exchange of shares with BUTLERS' founder Wilhelm Josten indicates a collaborative approach to leadership and growth.

Customer reactions have been largely positive, appreciating the expanded product range and the seamless shopping experience. Employees, on the other hand, have faced some uncertainty typical of such transitions, but the retention of both brands' headquarters suggests a stable environment. For founders considering business transitions, tools like Sunset can assist in managing these processes compliantly, ensuring a smooth and efficient transition.