Herbert Smith Freehills has advised Wesfarmers and its wholly owned subsidiary Bunnings on the landmark acquisition of Homebase from UK-listed Home Retail Group for £340 million.

Wesfarmers is a diversified conglomerate listed on the Australian Securities Exchange (ASX) with a market capitalisation of approximately A$44 billion.

Homebase is the second largest home improvement and garden retailer in the United Kingdom and Ireland, with reported revenue of over £1 billion for the 12 months ended 29 August 2015 and currently has 265 stores. 

This acquisition is Wesfarmers' first step in investing in the UK to build an exciting new Bunnings-branded UK and Ireland business. Bunnings is a leading home improvement and outdoor living retailer in Australia and New Zealand, with revenues in excess of A$9 billion.

London-based corporate partner Mark Bardell led the Herbert Smith Freehills team, with specialist legal advice provided by the TMT, employment, pensions, incentives, tax, financial services regulatory, real estate and environment teams.

Mark commented:

"We are proud to have worked with the very talented Wesfarmers and Bunnings team on this, the first major international acquisition for the group, and what will no doubt prove to be a transformative deal for the UK's home improvement sector.

Herbert Smith Freehills has been a longstanding adviser to Wesfarmers: from its initial corporatisation from a farmers' co-operative; its IPO and subsequent restructure; the hostile takeover that acquired Bunnings; and now this exciting major international step."