South African retail giant Mr Price acquires Studio 88 Group

0

Mr Price paid 3.3 billion rand ($225.4 million) for a 70% stake in the sportswear retail group, which includes private labels SideStep, John Craig and Skipper Bar .

Studio 88 operates a total of over 700 stores in South Africa as well as neighboring countries Botswana, Namibia, Lesotho, Zambia and Mozambique.

The leisure and sports company also sells brands such as Adidas, Converse, Superga and Vans, giving Mr. Price “an ideal entry into the high-growth segments of urban wear and athletics,” said the Mr. Price Group’s chief executive, Mark Blair, in a statement.

“What attracts us to the Studio 88 group is their deep understanding of trend-conscious South African consumers and their ability to meet their needs through their various trading formats,” he added.

The 21-year-old group generated R5.6 billion in revenue for the financial year ended September 30, 2021, through the sale of a mix of brands under license agreements as well as its own private label ranges.

When the acquisition, which is being funded from Mr. Price’s existing cash resources, is complete, it is expected to bring Mr. Price’s annual turnover to over R28 billion and its business footprint to over 2 400 stores.

The deal will see Mr. Price acquire RMB Ventures’ 100% stake in Studio 88 owner Blue Falcon, management will also have 50% of their stake, allowing Mr. Price to reclaim those shares. It will eventually acquire the rest of the management stakes over the next four years.

Studio 88 founder Laurence Wernars will continue to lead the company with his management team.

Learn more:

South African Mr Price gets green light to acquire Power Fashion

South African budget retailer Mr Price Group has received all approvals to acquire retailer Power Fashion in a deal likely to exceed $105 million.


Source link

Share.

Comments are closed.