The U.K. bookstore chain Ottakar's has bought the 24 Hammicks bookshops for £3.27 million ($5.2 million). The deal, funded by increased bank facility, consolidates Ottakar's position as the second biggest book retailer in the U.K.
It has been a good year for Ottakar's. In the 12 months ended February 1, the company had a profit of £5.1 million on revenue of £114.8 million. Sales for this year's first quarter were up 20.1%. The new Hammicks shops bring revenue of £28 million.
The fit could not be better in terms of geographical spread; the 24 shops are mainly in the northwest and southeast of England with only one overlap. Philip Dunne, chairman of Ottakar's, confirmed, "The shops' locations, range and culture are entirely complementary to our own." Both Ottakar's and Hammicks have targeted market and commuter towns, and are known for their accessible and friendly approach to bookselling.
The 400 bookselling staff at Hammicks will breathe a sigh of relief, as their future has been uncertain for the past 12 months. Hammicks's executive directors will not make the move and Ottakar's will not be acquiring Hammicks's legal division. The 24 new shops will be rebranded as Ottakar's over the next three months.
