Cape Town - Retailer The Foschini Group [JSE:TFG] announced on Thursday that TFG Retailers, a wholly-owned subsidiary of the company in Australia, has entered into an agreement with the Retail Apparel Group (RAG).
In terms of the deal, TFG Australia will acquire the entire issued share capital of RAG from private equity group Navis Capital, Stephen Leibowitz (the founder of RAG) and certain management members who will remain as the management of RAG once the acquisition has been completed.
RAG was established in 1987 and has become a leading speciality menswear apparel retailer in Australia. According to Foschini, it houses a balanced portfolio of core and emerging retail apparel brands and has established itself as a menswear player in the mid to value, fashion conscious speciality store segment in its local market.
It also has a small but growing women's "athleisurewear" retail offering.
"RAG's brands are uniquely positioned across diversified product categories, generating a resilient and growing earnings stream," said Foschini.
The company has grown its national footprint to a network of 400 stores, strategically positioned throughout Australasia to capture its target market. Eighty percent of RAG's stores are located in shopping centres, with the remainder in city centres, neighbourhood centres and factory outlets.
The deal is subject to regulatory approval.
Foschini shares were trading 0.14% up at R140.85 at 10:56 on the JSE.