Listed retailer Pepkor says it has entered into a transaction agreement with Retailability Proprietary to acquire its Legit, Swagga, Style, and Boardmans businesses.
The proposed acquisition aims to strengthen Pepkor’s presence in the adult wear market and expand its retail footprint across Southern Africa.
The total purchase consideration to be settled in cash, represents less than 2% of Pepkor’s market capitalisation of R96.8 billion. The deal is subject to both regulatory and commercial suspensive conditions customary for transactions of this nature.
Retailability operates a portfolio of affordable apparel and lifestyle brands across Southern Africa, including South Africa, Botswana, Lesotho, Namibia, and Eswatini.
The businesses being acquired, which include 462 stores in the region, will become part of Pepkor Speciality, a business unit within the Pepkor group.
However, the deal does not include Retailability’s Edgars, Edgars Beauty, Red Square, Kelso, and Keedo businesses, which will continue to be operated separately by Retailability.
With a significant market presence in the babies’, kids’, and school wear categories, Pepkor has long expressed its intention to increase its footprint in the adult wear space. This acquisition is in line with that objective and will provide a major boost to the group’s market position, the group said.
The recent launch of the Ayana womenswear brand and the acquisition of Choice Clothing further exemplify Pepkor’s commitment to this growth strategy. The acquisition of Legit, Swagga, and Style will notably enhance Pepkor Speciality’s product offering, particularly in the womenswear sector through Legit.
The Boardmans brand, which operates in the homeware segment, will be incorporated into Pepkor Lifestyle, further diversifying Pepkor’s offerings.
Pepkor’s COO, Sean Cardinaal, said: “This represents a major milestone in the execution of Pepkor’s strategic growth model by accelerating growth in our Traditional Retail core. It will also contribute to our other growth pillars, including Financial Services & Connectivity, Omnichannel, and Leverage & Efficiency, ensuring long-term performance and returns.”
