Actis sells stake in South African furniture company
The Foschini Group (TFG) has entered into a sale and purchase agreement to acquire the entire issued share capital of Tapestry Home Brands from Westbrooke Investments, funds managed by Actis, as well as the current and previous management of Tapestry.
Tapestry is a prominent direct-to-consumer, vertically integrated designer, manufacturer and omnichannel cash retailer of home furnishings serving consumers’ living and sleeping needs, targeting the middle to upper LSM markets. The Tapestry 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.
Tapestry’s own, locally manufactured product accounts for about 47% of net sales, employing a total of approximately 2,500 people, with manufacturing facilities located in Cape Town, Johannesburg and Gqeberha. Tapestry operates about 175 stores across South Africa, Namibia and Botswana.
Acquiring this highly cash generative business presents significant revenue opportunities within the TFG ecosystem. In addition, TFG’s retail credit offering and its digital and omnichannel capabilities are expected to substantially enhance Tapestry’s growth and digital transformation efforts.
The cash purchase consideration of R2.35 billion (about $152.6 million) is structured on a debt-free, cash-free basis and payable at the time of implementation of the transaction (closing date), subject to certain conditions.
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