Ellerston Capital circling century-old Winning Appliances
Packer-linked investment house Ellerston Capital is reportedly closing in on a full acquisition of Winning Appliances, the 120-year-old whitegoods and homewares retailer founded and still wholly owned by the Winning family.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Reported full acquisition (100% buyout) of a family-owned business by a private equity-backed investment manager.
Investor: Ellerston Capital, a ~$5 billion specialist investment manager founded in 2002. Executive Chairman Ashok Jacob is the former CEO of Consolidated Press Holdings, the Packer family's holding company.
Winning Group is one of Australia's last remaining domestically owned whitegoods retailers. The business traces its origins to 1906 when the family patriarch began selling horse saddlery, later expanding into knives, gas stoves and electric washing machines after World War II. Today, it operates around 20 stores, 16 on the East Coast and two in Perth, along with the fast-growing Appliances Online platform which launched in 2005 and recently hit 3 million customers. The group expanded into New Zealand in 2021 with a 6,000 sqm distribution centre at Waitemata Port.
John Winning Jr took over from his father in 2011 as the fourth generation to lead the business. The Winning family's estimated wealth was placed at $770 million by the Financial Review Rich List in 2025.
The financials tell a mixed story. The company's most recent accounts showed revenue of $885.5 million, earnings (EBITDA) of around $25 million, and pre-tax profit of $5.8 million. However, more recent statutory filings reported paint a deteriorating picture: for the year to 30 June 2025, after-tax profit fell approximately 60% to $1.9 million (from $4.75 million the prior year), while revenue slipped to $855.5 million. Total liabilities climbed to $267 million, and the group reported negative working capital of $36.7 million, a position largely attributed to $92 million in customer deposits.
The approach also comes at a difficult time for the broader retail goods sector. Online furniture and homewares retailer Temple & Webster saw almost a third of its sharemarket value wiped in the same week after aggressive discounting eroded margins. Nick Scali's shares fell sharply following a soft January trading update. Expectations of further Reserve Bank of Australia interest rate hikes are weighing on sentiment across the sector.
The competitive landscape is shifting. JB Hi-Fi reportedly held discussions with the Winning family but walked away. It subsequently acquired Melbourne-based premium appliance retailer e&s, with plans to expand nationally, setting up a direct clash with Winning Appliances and Harvey Norman Commercial. Wesfarmers also reportedly examined the business but opted against proceeding.
Meanwhile, several other players are looking to come to market. Mattress and sofa brand Koala is eyeing a potential ASX listing at a valuation of around $400 million. Quadrant Private Equity's Home Furniture Group Holdings which houses Amart and Freedom has also pitched for an IPO. In private equity, mid-market firm Colinton Capital Partners acquired Australian brand Doors Plus last year from its founding family.
