Mr Price secures regulatory clearance to acquire Studio 88 in R3.6bn deal
The 70% stake in the retail group will offer further exposure to the younger consumer market
30 September 2022 - 10:03
byAndries Mahlangu
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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.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Mr Price secures regulatory clearance to acquire Studio 88 in R3.6bn deal
The 70% stake in the retail group will offer further exposure to the younger consumer market
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.
mahlangua@businesslive.co.za
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