JB Hi-Fi is broadening its product categories as it agrees to acquire a controlling interest in E&S Trading Co, which offers kitchen, laundry, and bathroom products.

The consumer electronics retailer agreed to an initial acquisition of 75 per cent of E&S for cash consideration of A$47.8 million on a cash-free,debt-free basis.

The parties also arranged on an option for JB Hi-Fi to acquire the remaining 25 per cent in September 2029.

“E&S has a highly complementary premium product offering, which will appeal to a new customer base, and a commercial construction market focus, making it a strategically compelling addition to the JB Hi-Fi Group,” said Terry Smart, JB Hi-Fi’s CEO.

E&S has 10 showrooms in Victoria and online, and a showroom in ACT due to open this month.

Rob Sinclair, whose family founded E&S in 1962, will remain as the company’s MD after the acquisition.

“JB Hi-Fi’s deep understanding of the homemaker sector and extensive experience in the appliance industry make it an ideal partner for our business,” said Sinclair.

The acquisition announcement comes as JB Hi-Fi reported sales for the June year eased by 0.4 per cent to $9.6 billion, while the group’s earnings before interest and taxes slumped 15.8 per cent to $647.2 million. Net profit fell 16.4 per cent to $438.8 million.

The New Zealand business stood out with sales jumping 12.3 per cent to NZ$327.9 million, and the company’s Australian sales rose by just 1 per cent to $6.61 billion.

The Good Guys’ home appliance chain’s sales fell 4.8 per cent to $2.68 billion.