Brian Joffe’s investment firm Long4Life is not being gung-ho about its latest potential transaction: the purchase of footwear and clothing retailer Rage. "This is a high-growth company and it has huge potential, but I want to reiterate, it’s subject to us doing a proper due diligence and that work is in progress, so for the next two months that’s what we will be concentrating on," Joffe told Business Day. His comments came as some analysts said the R3.9bn price tag might be too high. "In our view, Rage is reasonably priced based on the information that we’ve currently got. I’m not saying it’s a bargain but it’s also not hugely overpriced. It’s a very unique asset," the Bidvest founder said.
Rage — whose 555 existing stores target middle-and lower-income earners — operates in a fast-growing segment of the market and provides Long4Life with exposure to new types of customers. Scale was essential in the market Rage operated in, "and it’s not every day that you can find a company ...
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