Foschini Group buys Coricraft, Dial-a-bed, and Volpes owner

The Foschini Group (TFG) says it has entered into an agreement to acquire the entire issued share capital of Tapestry Home Brands for R2.35 billion.

TFG said it is acquiring the sale shares from Westbrooke Investments Proprietary Limited, funds managed by Actis, as well as the current and previous management of Tapestry whose brands include popular made-to-order furniture retailer, Coricraft; South Africa’s renowned branded bedding retailer Dial-a-bed; home textile retailer, Volpes; and value bedding retailer, The Bed Store.

Established in 2005, Tapestry’s own, locally manufactured product accounts for 47% of net sales, employing a total of approximately 2,500 people, with manufacturing facilities located in Cape Town, Johannesburg, and Gqeberha. Tapestry operates 175 stores across South Africa, Namibia and Botswana. The three business segments, namely living, linen and bedding, are run on a decentralized basis by a strong management team, it said.

“The transaction will provide TFG with exposure to new products and categories as well as new customers that will complement the current TFG customer base in existing categories. Furthermore, Tapestry’s unique business model, with easily scalable local manufacturing and distribution capabilities, is an excellent strategic fit for TFG.

“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.

It said that its retail credit offering and its digital and omnichannel capabilities are expected to substantially enhance Tapestry’s growth and digital transformation efforts.

“The acquisition of Tapestry will augment TFG’s current @home operation which offers premium home textiles, kitchenware, décor and furniture in the middle to upper segments, and provides further opportunities for Jet Home, which offers value fashionable homeware.”

Following the acquisition, TFG will have nine home consumer brands (@home, @homelivingspace, Jet Home, 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).

“This acquisition will offer TFG an expanded distribution network and its own last-mile furniture delivery and assembly service.”


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