JB Hi-Fi and Super Retail Group in the running for $500m electronics firm Jaycar

Alex DruceNCA NewsWire
Frasers Property Australia has sold an $80m land and build package to Jaycar Electronics Group
Camera IconFrasers Property Australia has sold an $80m land and build package to Jaycar Electronics Group Credit: Supplied

Retail heavy hitters JB Hi-Fi and Super Retail Group are rumoured to be shopping around for a deal, and they’ve got their sights set on gadgets firm Jaycar.

Both companies are understood to feature prominently on the list of suitors for the $500m Jaycar as it prepares to receive first-round offers in a bidding campaign run by investment bank Barrenjoey.

The business media has speculated on Jaycar’s future after founder Gary Johnston died in early 2021.

The electronics company was founded in 1981 and has been a mainstay of the retail landscape in Australia and New Zealand with more than 130 stores.

Supplied Editorial Frasers Property Australia has sold an $80 million land and build
 package to Jaycar Electronics Group
Camera IconFrasers Property Australia has sold an $80m land and build package to Jaycar Electronics Group Credit: Supplied

Jaycar sells things such as semiconductors, batteries and chargers, surveillance and alarm systems, radios, tools, cameras, and an array of amusing novelties and gadgets.

It also operates in the UK and US.

The Australian’s Dataroom reported on Tuesday that the main contenders to land Jaycar were JB Hi-Fi and Super Retail Group as well as a swathe of private equity firms, including BGH Capital and Quadrant Private Equity.

JB Hi-Fi is worth $5bn and also owns The Good Guys, while the $2.1bn Super Retail Group stable includes Supercheap Auto, BCF, Rebel Sport, and Macpac.

TCP BUSINESS - Jaycar Electronics have refurbished their building and are now trading alone without Leading Edge Electronics.
Camera IconThere’s been speculation on Jaycar’s future since its founder Gary Johnston died in early 2021. Credit: News Limited

Jaycar generated $30m in after-tax profit in the 2021 financial year and paid a $50m dividend to shareholders, according to its most recent financial statements.

The merger and acquisition market is ticking along despite equities wilting in the face of rising inflation and concerns that interest rate increases will severely crimp household spending.

Woolworths, for example, announced on Friday that it was buying 80 per cent of online marketplace MyDeal for $1.05 per share.

Qantas on Monday also said it had taken a majority stake in pre-packaged holiday firm TripADeal.

Originally published as JB Hi-Fi and Super Retail Group in the running for $500m electronics icon Jaycar

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