Discount fashion retailer Mr Price has received a regulatory clearance to acquire a 70% stake in Studio 88 group in a R3.6bn deal that gives it further exposure younger consumer market, predominantly in townships.
“We are grateful to have received such a positive outcome from the regulatory processes, including from the SA competition commission, without any conditions,” CEO Mark Blair said in a statement on Friday.
Studio 88 is the largest independent retailer of branded leisure, sporting apparel and footwear in SA, generating revenue of R6.4bn in its year to end-September through its 778 store base.
Mr Price is buying out the RMB Ventures stake in Studio 88, as private equity typically invests in the growth phase of a business.
The management team of the Studio 88 group have a history of maintaining strong brand relationships and customer loyalty and delivering consistent earnings growth over the long term, according to Mr Price.
Founder Laurence Wernars will continue running the business with his management team.
Article written by Andries Mahlangu of Business Day
