Back
~
2
min read
· Posted on
February 21, 2024

Woolworths has cashed out $636 from its stake in Endeavour Group to find its next big op-paw-tunity. Fur real.

Woolworths has sold 5.5% of its stake in Endeavour Group for $636m.

What's the key learning?

  • Woolworths sold 5.5% of their stake in Endeavour Group for $636m and now they will be spending $586m to purchase a 55% stake in Petstock.
  • Woolworths first launched a joint venture for pet insurance called PetSure in 2020 and then it invested in an online pet goods business called PetCulture in 2021.
  • The smaller investments allowed Woolworths to learn about the pet space, gather data and feedback from the industry and build relationships with key players.

👉 Background: Woolworths Holdings is the retail behemoth behind Woolworths supermarkets as well as Big W. Previously, it owned Dan Murphy’s, BWS, Cellarmasters and many other liquor brands. In 2019, those liquor brands were spun into a smaller biz within Woolworths called Endeavour Group.

👉 What happened: In 2021, the Endeavour Group was listed on the ASX as a separately listed company. But it wasn’t a total break up because Woolies still owned just under 15% of Endeavour Group.

👉 What else: Now, Woolies has sold 5.5% of their stake in Endeavour Group for $636m, which gives them cash for a brand, spankin' new purchase. And it has just been revealed that they will spend $586m to purchase a 55% stake in PetStock. It's not their first rodeo in this space either.

What's the key learning?

💡From little investments, big investments grow. Woolies first launched a joint venture for pet insurance called PetSure in 2020. Then it invested in an online pet goods business called PetCulture in 2021.

💡These smaller investments allowed Woolworths to learn about the pet space, gather data and feedback from the industry and build relationships with the key players.

💡Woolies would have seen that Australia is in a pet boom.

So a major investment in pet goods retailer PETStock could be just what the vet ordered to ride this pet boom.

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
No items found.