Niche gifts and gadgets retailer Menkind has announced it has acquired consumer gadgets brand RED5.
As part of the acquisition, Menkind intends to retain RED5’s existing stores, warehouse and offices, plus its 220 staff. The original founders Jonathan Elvidge and Joth Baron will remain actively involved in the business during the transition period, as consultants to the management team.
At the end of the 2015 financial year, RED5 reported an 18% sales growth, a turnover of £18 million and pre-tax net profits of £1.3 million.
The acquisition will see RED5 and Menkind both continuing to operate as separate brands.
RED5 was founded in 2005 by Jonathan, the original creator of the Gadget Shop, and Joth, as the ‘ultimate gadget shop’ with its first store opening in Hull.
It currently has nine permanent UK stores and four concessions in Hamleys and Selfridges, in addition to a number of pop-up stores, and also sells products via its website and wholesale to stores including Boots, Argos and John Lewis.
Paul Kraftman, chief executive and founder at Menkind, said: “We are delighted to have acquired RED5, which has huge credentials within the gadgets arena, and until now was a main competitor of ours. We feel this acquisition is key to the continued growth of Menkind, and anticipate it helping us to increase our market share and accelerate our expansion.”
Jonathan Elvidge added: “We are thrilled that Menkind has acquired RED5 – it was previously a competitor that we have had tremendous respect for, and we are delighted to come together in this move. We feel this acquisition will help to cement the future success of the RED5 business, and that both companies will benefit from additional support, resource, sector experience and expertise as a result.”