WH Smith has traded successfully in the US for fifteen years under the WHSmith brand and has recently been building a position in Asia and Australia.
Blue Star is the leading bookseller in Australia and New Zealand. It operates primarily under two brands, Angus & Robertson in Australia and Whitcoulls in New Zealand. It operates 184 wholly owned stores and has over 2,000 employees.
In total, in the year to April 2001, Blue Star generated sales of £112m (NZ $370m) and proforma earnings before interest, tax and depreciation of £5.5m (NZ$18m).
Blue Star has a strong management team, which will remain in place. In addition, WHSmith believes that there are considerable opportunities to add value by applying its retail expertise.
Richard Handover, Group Chief Executive, said:
We have identified international retail expansion as a growth opportunity. Our strategy is to focus on three key areas travel locations, English language bookshops and high street locations in English speaking territories. As a book retailer in both high street and travel locations, Blue Star is an excellent fit.
The acquisition of Blue Star gives us market leading positions in Australasia in books, one of our core business areas. It represents an excellent opportunity for us to establish a strong base in the region and to leverage our retail expertise on an increased international scale. By working closely with the existing management team, we believe we can maximise the growth potential of the business.
