Actis, Westbrook Investments and other shareholders agreed to sell their entire interest in Tapestry Home Brands, a South Africa-based home furnishings company, to Johannesburg-listed The Foschini Group for US$150 million.
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.
“The company has an outstanding management team and could not have wished for a better home than TFG. In the period following the acquisition of Coricraft we developed our business model around the business and consumer advent ages and benefits of vertical integration,” Martin Sacks, Executive Chairman of Westbrooke Group and Chairman of Tapestry said.
“Over this period, it was completely contrary to the one-way traffic of offshoring manufacturing and an almost total import supply chain for consumer products in SA.”
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.