The DIY products and building supplies firm will pay an initial £5.1 million for a majority stake in Solar Fast before the remaining payment in early 2025
Wickes, the home improvement retailer, has announced a deal to buy a majority stake in a solar panel installation company, Solar Fast.
The company also reported higher-than-expected annual profits. Wickes told its shareholders that it plans to buy a 51% stake in the parent company of Solar Fast. The deal values Solar Fast at up to £36 million.
Wickes will pay an initial £5.1 million once the deal is completed, with the remaining payment due in early 2025. Wickes also has the option to buy the remaining 49% stake in the company over the next five years.
This move will allow Wickes to expand further into the energy installation market. David Wood, the chief executive of Wickes, said: “The Wickes brand has been trusted by home improvers for over 50 years and with Solar Fast as part of our proposition we will be perfectly placed to support them with their energy saving plans.”
David Draper, the founder and chief executive of Solar Fast, said: “This is tremendous news for Solar Fast. We’re a family business and our vision has always been to become the number one provider in the UK for quality domestic solar installations, and with the Wickes brand behind us, we are closer to achieving that vision.”
Wickes reported a decline in revenue and earnings for the previous fiscal year after announcing the transaction with revenue dropping to £1.56 billion for the fiscal period that ended on December 30 from the previous year’s reported £1.55 billion. The business had a successful year due to strong expansion in its business targeting trade professionals and rising kitchen sales in the latter half of the year.
Wickes saw its adjusted profits before taxes increase to £52 million, which outperformed projections, but was still lower than the £75.4 million the company recorded in the previous fiscal period.
