Screwfix acquires assets of Connect Distribution Services Limited

Screwfix, the omnichannel trade retailer and part of Kingfisher plc, has announced it has acquired the stock, intellectual property, contracts and fixed assets of Connect Distribution Services out of administration, for a cash consideration of £3m. Connect Distribution Services Limited is a retailer of appliance spares, accessories and consumables to both tradespeople and consumers through digital and telephone channels. Screwfix said it will continue to operate the business as a going concern, acquiring its e-commerce platforms, stock, intellectual property and product data, with over 400 current Connect Distribution Services employees transferring to Kingfisher group. Connect Distribution Services’ online trading brands, which include well-known sites such as eSpares, BuySpares, 4OurHouse and the Connect Trade Portal, will continue to operate as normal. Screwfix added that the deal allows for many opportunities for synergy, with both businesses serving B2B and B2C customers through leading digital and fulfilment platforms. Over time, Screwfix will explore opportunities to enable customers to Click and Collect orders through Screwfix’s convenient nationwide store network. There is also potential to generate synergies with other parts of the Kingfisher Group. John Mewett, Screwfix CEO, said: “I’m very pleased to be able to secure the future of the business of Connect Distribution Services and its brands for its customers, engineers and colleagues. The business’ popular ecommerce platforms have significant growth potential and they play an important role in helping tradespeople and consumers keep products in use for longer, supporting our sustainability agenda. “As an entrepreneurial and customer-focused family business with a 50-year history, the culture is a great fit for Screwfix and we look forward to welcoming our new colleagues.” Mark Depper, COO, Connect Distribution Services, said: “I’m delighted that Screwfix and Kingfisher have recognised the strengths of the brands and will continue to run this amazing business that my father started 50 years ago. I’m confident that this new ownership will realise the full potential of the brands.” Mike Denny, Alvarez and Marsal, joint administrator of Connect Distribution Services, added: “We are delighted to have completed a sale of the majority of the business and assets of the CDSL group of companies to Screwfix, saving over 400 jobs. We wish the business every success under its new ownership.”