The Foschini Group (TFG) has entered an agreement to buy Coricraft and Dial-a-Bed owner Tapestry Home Brands for R2.35 billion.
The JSE-listed retail clothing group is buying the entire share capital from Westbrooke Investments, funds managed by global emerging markets investment firm Actis, as well as the current and previous management of Tapestry.
Some of Tapestry’s other brands include Volpes and The Bed Store. The 17-year-old Tapestry employs approximately 2,500 people. It has manufacturing facilities in Cape Town, Johannesburg and Gqeberha, and Tapestry operates 175 stores across SA, Namibia and Botswana.
TFG said Tapestry’s business model is an excellent strategic fit for the group and will provide it with “exposure to new products and categories as well as new customers that will complement the current TFG customer base”.
With the acquisition, TFG will eventually have nine home consumer brands: @home, @homelivingspace, Jet Home, Coricraft, Volpes, Dial-a-Bed, The Bed Store, Granny Goose, and Biggie Best.
The deal is still subject to approval by competition authorities and the Takeover Regulation Panel, and ironing out issues due to “change of control” in relation to lease agreements for stores.