CHAMWE KAIRA
Pepkor has signed a transaction agreement with Retailability Proprietary Limited to acquire the Legit, Swagga, Style, and Boardmans businesses.
These businesses will be added to Pepkor’s Speciality business unit, which already includes Tekkie Town, Shoe City, Dunns, Refinery, CODE, SPCC, and Ayana. Pepkor Speciality operates 941 stores across South Africa, Botswana, Lesotho, Namibia, and Eswatini.
Retailability is a privately owned retail group offering affordable apparel and lifestyle products.
The acquired brands operate 462 stores in the same five countries.
The Edgars, Edgars Beauty, Red Square, Kelso, and Keedo brands are not part of the deal and will remain under Retailability.
Pepkor had previously announced its intention to grow its share in the adult wear market through both organic growth and acquisitions.
The acquired businesses will be incorporated into the Pepkor Speciality business unit.
Pepkor Speciality provides a range of adult apparel, footwear and accessories across seven retail brands, including Tekkie Town, Shoe City, Dunns, Refinery, CODE, SPCC and Ayana.
Pepkor Speciality’s total store base comprises 941 stores across South Africa, Botswana, Lesotho, Namibia, and Eswatini.
Tyrone Vieira, CEO of Pepkor Emerging Businesses, said: “We are excited to welcome Legit and other Retailability businesses into Pepkor Speciality, forming an integral part of our strategy to grow our market position in adult wear. These businesses are a natural fit for Pepkor Speciality and we are looking forward to integrating them and unlocking benefits from the added scale.”
Pepkor’s COO, Sean Cardinaal, stated that the acquisition of these businesses “represents a major milestone in the execution of Pepkor’s strategic growth model by accelerating growth in the group’s Traditional Retail core. This, in turn, will enable strategies in our other growth pillars of Financial Services & Connectivity, Omnichannel, and Leverage & Efficiency – contributing to Pepkor’s delivery of compelling and sustainable long-term performance and returns.”
The total purchase amount, to be paid in cash at closing and subject to net working capital adjustments, represents less than 2% of Pepkor’s market capitalisation.
In September last year, Pepkor agreed to acquire Shoprite’s furniture business, which runs over 400 stores in South Africa, Botswana, Lesotho, Namibia, Eswatini, and Zambia.
