Angling Direct snaps up Birmingham's Fosters Fishing

Specialist fishing tackle and equipment retailer Angling Direct has acquired the entire issued share capital of Fosters Fishing for a total consideration of £3m, payable in cash, it confirmed on Monday.

The AIM-traded firm said that, from a 17,000 square foot superstore located on the outskirts of Birmingham, Fosters currently operated as “one of the largest” fishing tackle retailers in Europe.

It said the firm had been in business for more than 30 years, held around £1.2m of stock, and catered for “all types” of fishing disciplines.

The store is reportedly located five minutes from junction six of the M6 and 3.5 miles from Birmingham city centre.

Angling Direct’s board said the acquisition increased its presence in the midlands, together with its Halesowen and Willenhall stores.

The acquisition took the total number of Angling Direct stores to 17, with a new store in Slough due to open in early October as it had previously announced.

In the year to 31 March, Fosters generated revenues of £5.9m and an operating profit before tax of £0.46m, with net assets of £1.1m.

Within net assets was the freehold property of the Fosters store, which had been recently valued at £0.5m.

Following completion of the acquisition, Mark Foster would remain with Fosters “for a few weeks” to ensure a smooth handover, and Richard Foster would continue to work in the business on a part time basis.

“Fosters is a long-established and very successful business with a loyal customer base and knowledgeable team,” said Angling Direct CEO Darren Bailey.

“The acquisition will be earnings enhancing from day one and validates Angling Direct's long-term strategy - to consolidate the fishing tackle market whilst expanding our business through acquisition.

“We look forward to working closely and supporting the Fosters team with the integration over the coming months.”