Homebase in Derry is amongst 265 stores that have been sold by Home Retail Group to Australian retail giants, Wesfarmers, for £340m.
Wesfarmers already owns Bunnings, one of Australia’s largest DIY and outdoor supplies businesses.
The Derry store, which located in Crescent Link Retail Park, and the other 264 stores throughout the UK will be re-branded under the Bunnings banner over the next three to five years.
Wesfarmers said it intends on spending a further £242m on upgrading the stores.
The deal is expected to be concluded within the first three months of 2016 provided the shareholders of Home Retail Group agree to the sale.
Announcing the deal, Home Retail Group chairman John Coombe said: “We are very pleased to have reached agreement with Wesfarmers regarding the sale of Homebase. We believe that this is the best deal for shareholders and for the business.”
Bunnings managing director John Gillam said “Homebase has an established and scalable store platform with strong representation in high density areas,” Mr. Gillam said.
“The stores are well-sized for the UK market and support warehouse merchandising,” he added.
“We will combine essential local elements with the best of Bunnings to bring customers in the UK and Ireland an exciting new home improvement and garden offer.”