A shopper walks past a Foschini store in a shopping center in Lenasia, south of Johannesburg, file. REUTERS/Siphiwe Sibeko

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  • Acquisition enables TFG to further expand into furniture, bedding
  • Acquisition of Tapestry to help TFG accelerate local manufacturing
  • TFG to buy Tapestry from private equity firms

JOHANNESBURG, March 7 (Reuters) – South Africa’s TFG (TFGJ.J) is to buy the owner of the Coricraft, Volpes and Dial-a-bed chains for 2.35 billion rand ($152.78 million) as ‘It is looking to expand further into the furniture and bedding market,’ the retailer said on Monday.

The acquisition will help TFG reduce its dependence on Asia and other import markets, allowing it to source locally in the face of soaring shipping costs and disruptions to the supply chain related to COVID-19. Read more

“The transaction is consistent with TFG’s stated strategy of vertical integration in key product categories and the continued development of its rapid-response local manufacturing capability,” said the apparel, homewares and jewelry retailer. .

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Local manufacturing helps improve a retailer’s delivery time, thereby increasing their competitiveness against local and global chains.

TFG, also known as Foschini Group, said it is acquiring the shares of Tapestry Home Brands from private equity firm Westbrooke Investments Proprietary Limited, funds managed by Actis, and current and previous management of Cash Tapestry.

Tapestry, a vertically integrated omnichannel designer, manufacturer and cash retailer of home furnishings targeting the mid to upper market operates 175 stores in South Africa, Namibia and Botswana.

Tapestry’s locally manufactured products account for approximately 47% of its global net sales, with manufacturing facilities located in Cape Town, Johannesburg and Gqeberha.

Tapestry’s net asset value was R115 million as of February 28, 2021, while earnings before interest, tax, depreciation and amortization was R264 million, with post-tax profit attributable to net assets of R34 million. rands, TFG said. .

Following the acquisition, TFG will have nine consumer brands and four vertically integrated factories.

($1 = R15.3820)

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Reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo

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