Cape Town - The Foschini Group announced on Tuesday that it would be buying British women's wear brand Hobbs.
In a market update, Foschini [JSE:TFG] said its UK subsidiary TFG Brands had entered into an agreement to acquire the entire issued share capital of Hobbs.
It did not say what this would cost.
“Hobbs currently has 140 outlets comprising standalone stores and concessions in the UK and is stocked in selected departmental stores across the world, including Bloomingdales in the US and Wohrl and SinLeffers in Germany.
It also sells its merchandise online in 49 countries,” said Foschini in a statement.
According to a statement on its website, Hobbs has 219 stores and concessions across Europe, including the UK, and employs 1 000 people.
In 2015/16, it had a turnover of £110m (approximately R2bn).
Foschini said the acquisition would help position as its international brand, and enhance its online presence.
At 11:30 on Tuesday, Foschini’s shares were slightly firmer on the JSE, having gained 0.6% to trade at R143.40 per share.
SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.