Mr Price said on Friday that it received a regulatory clearance to acquire a 70% stake in Studio 88 Group in a R3.6 billion deal.
In a statement, Mr Price said all conditions precedent per the transaction agreements had now been fulfilled, including approval from the relevant competition authorities, and the transaction had now become unconditional.
Studio 88 group is the largest independent retailer of branded leisure, lifestyle, and sporting apparel and footwear in South Africa. It is a founder-led business that has been operating in southern Africa since 2001.
The inclusion of the Studio 88 Group would increase Mr Price’s annual revenue to more than R28bn and would prospectively become the group’s second largest of nine trading divisions.
Mr Price Group CEO Mark Blair said, “We are grateful to have received such a positive outcome from the regulatory processes, including from the South African competition commission, without any conditions. We are very excited about Studio 88 joining the Mr Price family and look forward to seeing them continue performing and taking hold of opportunities.”
Mr Price said it had frequently communicated its acquisition criteria and was confident that the Studio 88 Group met its strict requirements for investment. The group believed that the acquisition fitted well into its strategic plans and aligned with its capital allocation thresholds.
“The management team of the Studio 88 Group has a history of maintaining strong brand relationships and customer loyalty and delivering consistent earnings growth over the long term. The team will remain in place and are highly motivated to continue delivering on its impressive track record. Management’s retained shareholding will be acquired over four years post closing date,” the company said.
Article written by Dieketseng Maleke of IOL Business Report