The co-founders of the UK's Ideal World home shopping business claimed another success today after unveiling a £5m (€5.6m) takeover of their plant and garden equipment retail venture – just two years after they set it up.
Paul Wright and Valerie Kaye have agreed the deal with Ideal Shopping Direct, the company they set up nearly 30 years ago and in which they still hold a combined shareholding of 29%. The pair left the board of Ideal Shopping, owner of the Ideal World television channel, in 2007.
Their subsequent venture, Lead The Good Life, generated turnover of almost £6m (€6.7m) and pre-tax profits in £730,000 (€817,000) in the 17 months since its launch in January 2008. The business, which trades as Gardenbargains.com, specialises in the mail order and web sale of plants and garden equipment.
Ideal Shopping said the acquisition boosted its leisure product category and provided seasonal balance against its Christmas peak trading period.
It is paying £750,000 (€839400) in cash and the rest of the £5m (€5.6m) in shares, with a further £2.2m (€2.5m) in shares dependent on performance. The deal, which is subject to shareholder approval, could see the stake of the co-founders and related parties rise to more than 40%.