Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

UPDATE 1-S.Africa's TFG buys Australia's RAG for A$303 mln

Published 25/05/2017, 10:02 pm
Updated 25/05/2017, 10:10 pm
© Reuters.  UPDATE 1-S.Africa's TFG buys Australia's RAG for A$303 mln

(Adds details)

JOHANNESBURG, May 25 (Reuters) - TFG (The Foschni Group) TFGJ.J will buy menswear chain Retail Apparel Group (RAG), the South African retailer said on Thursday, marking its first foray into Australia with a deal that includes more than 400 outlets.

TFG said it would pay 302.5 million Australian dollars ($225.82 million), or seven times RAG's expected 2017 earnings before interest, tax, depreciation and amortisation (EBITDA). The price excludes debt.

The company has made three overseas acquisitions in as many years as it looks for growth beyond sub-Saharan Africa where poor shopping infrastructure and weakening economies limit potential.

The transaction will allow TFG to add low to mid-market store brands such Tarocash and Connor to its portfolio of stores that include menswear chain Markham and Total Sports, the biggest reseller of Nike (NYSE:NKE) NKE.N and Adidas ADSGn.DE merchandise in South Africa.

TFG bought British high street chain Whistles last year, following an acquisition of UK footwear and clothes retailer Phase Eight the year before.

RAG, which also operates New Zealand and was formed in 1987, was sold by its founder Stephen Leibowitz and private equity firm Navis Capital, which took a majority stake in it in 2011.

($1 = 1.3396 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.