By Ian Neubauer
A spokesperson for Woolworths said the retail giant targeted Langton’s to bolster its online presence and help it market the fine wine offerings of its Dan Murphy’s outlets.
“It is a good little business and a nice fit that is complimentary to our liquor division,” the spokesperson said, adding the Dan Murphy’s is already a client of Langton’s, which has been trading since 1988.
The spokesperson said the acquisition was not announced to Woolworths shareholders because of the immaterial nature of the acquisition price. “It was quite a small thing for us. It was not material so there was no need to announce it,” the spokesperson said.
Woolworths will likely use its financial leverage to expand the operations of Langton’s but has indicated it will not interfere with the front-end of the business.
Langton’s founder Stewart Langton will remain with the company for at least three years. His payout has been layered to ensure the company meets sales target following the change in ownership.
Woolworths shares were trading for $27.55 at 3:00pm today (Feb 4) compared to $26.81 seven days ago.