Gadgets retailer Menkind plans expansion after buying competitor Red5

Both brands will continue to operate following the deal in order to make the most of their appeal to distinct customer groups.

Menkind founder and chief executive Paul Kraftman said: “Red5 has huge credentials within the gadgets arena and until now was a main competitor of ours.

“Whilst Red5 tends to attract younger buyers, Menkind’s wider gifting range appeals to the more mature customer.

“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.

“Our vision is to be the brand leaders in our niche markets, increase our store portfolios in the UK and expand internationally.

“We feel, with the acquisition of Red5, we can confidently achieve this with both brands.”

Red5 founder Jonathan Elvidge said: “We feel both companies will benefit from additional support, resource, sector experience and expertise.”

Menkind sells ‘boys’ toys’, gadgets and gifts. It has 40 UK stores  and sells online.

Last year Menkind’s sales rose 30% to £35m and it made a net profit before tax of £3.4m.

Red5 generated 18% sales growth last year to £18m and pre-tax net profits were £1.3m.

It has nine stores and four concessions in Hamley’s and Selfridges, and sells online.

Red5 also wholesales to retailers including Boots, Argos and John Lewis.