Steinhoff International said it has acquired a major stake in apparel retailer, Pepkor for R62.8 billion, which gives the budget furniture firm entry in to Africa's fast-growing garment markets.
The South African furniture maker purchased 92.34 per cent of the equity share capital of Pepkor for a total consideration of R62.8 billion.
Steinhoff will acquire 52.47 per cent of Pepkor from Titan, 37.06 per cent from Brait and 2.81 per cent from Pepkor management, with the remaining stake staying with the Pepkor management.
Founded in 1965, Pepkor manages a portfolio of retail chains operating in 16 countries across 3 continents and reported revenue of R38.2 billion for the financial year ended June 30, 2014.
It generated 63 per cent of its revenues from South Africa and surrounding countries, with rest of Africa accounting for 5 per cent. Australia with 23 per cent and Eastern Europe with 9 per cent, made up for the rest.
Pepkor trades from approximately 1.7 million square metres of retail space and provides employment to more than 32,000 people.
Its 12 main retail brands are mainly focused on the discount and value market segments and also include some specialty and service brands.
Its combined product range comprises of clothing, footwear, homewares, household goods, cellular products and services. (AR)
