Woolworths has acquired Gunns Retail Division in Tasmania and, in a separate arrangement, the Becks Timber & Hardware business.

The Gunns acquisition includes five hardware stores in Tasmania, one timber joinery centre, one truss manufacturing plant and a support office.

The move is part of the joint venture between Woolworths and US DIY giant Lowe’s to expand into the Australian home improvement market. Gunns revealed that the acquisition cost Woolworths Aus$40m (£24.2m) and came following a competitive bidding process.