The Foschini Group to buy Dial-a-bed, and Volpes owner
JSE-listed fashion and lifestyle retail group The Foschini Group announced that it has entered into an agreement with Tapestry Home Brands (Tapestry), a prominent home furnishings group whose brands include Coricraft; Dial-a-bed; Volpes and The Bed Store to acquire the entire share capital of Tapestry for a cash purchase consideration of R2.35bn, representing around 5% of TFG's market cap.
TFG also added that it would be acquiring the sale shares from Westbrooke Investments Proprietary Limited, funds managed by Actis.
According to TFG, the acquisition will increase TFG’s current @home business which offers premium home textiles, kitchenware, décor and furniture in the middle to upper segments as well as Jet Home which offers value fashionable homeware.
Following the acquisition, TFG Home Division will have nine Home consumer brands (@home, @homelivingspace, JetHome, Coricraft, Volpes, Dial-a-Bed, The Bed Store, Granny Goose, and Biggie Best), and four vertically integrated factories (mattresses, upholstered furniture, household textiles, duvets and pillows).
TFG will also have an expanded distribution network and its own last-mile furniture delivery and assembly service.
“The transaction is in line with TFG’s stated strategy of vertical integration in key product categories, and the continued development of its quick response local manufacturing capability. Opportunities exist to further leverage the strength of the manufacturing and sourcing capabilities of both businesses and to continue developing local procurement in a segment dominated by imported goods,” said The Foschini Group in a statement.
“This acquisition will offer TFG an expanded distribution network and its own last-mile furniture delivery and assembly service.”
Written by: Staff Writer.
Guzzle Media
