Foschini Group (TFG) has announced that it has reached an agreement to acquire the entire issued share capital of Tapestry Home Brands for R2.35 billion.
TFG said it is acquiring the selling shares of Westbrooke Investments Proprietary Limited, funds managed by Actis, as well as the current and former management of Tapestry, whose brands include renowned custom furniture retailer, Coricraft; renowned South African branded bedding retailer Dial-a-bed; household linen retailer, Volpes; and value bedding retailer, The Bed Store.
Established in 2005, Tapestry’s locally manufactured product accounts for 47% of net sales, employing a total of approximately 2,500 people, with manufacturing facilities located in Cape Town, Johannesburg and Gqeberha. Tapestry operates 175 stores in South Africa, Namibia and Botswana. The three business segments, namely life, linen and bedding, are managed in a decentralized manner by a strong management team, he said.
“The transaction will provide TFG with exposure to new products and categories as well as new customers that will complement TFG’s existing customer base in existing categories. Additionally, Tapestry’s unique business model, with easily scalable local manufacturing and distribution capabilities, is a great strategic fit for TFG.
“The transaction is consistent with TFG’s vertical integration strategy in key product categories and the continued development of its fast-response local manufacturing capability. There are opportunities to further leverage the strength of both companies’ manufacturing and sourcing capabilities and to continue to develop local sourcing in a segment dominated by imported products,” Foschini Group said.
He said its retail credit offering and digital and omnichannel capabilities are expected to significantly enhance Tapestry’s growth and digital transformation efforts.
“The acquisition of Tapestry will augment TFG’s current @home business, which offers home textiles, kitchenware, decorative items and high-end furniture in the mid to upper segments, and provides new opportunities to Jet Home, which offers trendy homewares.
Following the acquisition, TFG will have nine consumer brands (@home, @homelivingspace, Jet Home, Coricraft, Volpes, Dial-a-Bed, The Bed Store, Granny Goose and Biggie Best) and four vertically integrated factories ( mattresses, upholstered furniture, home textiles, duvets and pillows).
“This acquisition will provide TFG with an expanded distribution network and its own last mile furniture delivery and assembly service.”
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