The Foschini Group intends to acquire Tapestry Home Brands. Upon the implementation of the proposed transaction, TFG will exercise sole control over Tapestry. Picture: Armand Hough.
The Competition Tribunal said on Tuesday it had conditionally approved the large merger between The Foschini Group (TFG) Limited and Tapestry Home brands in a R2.43 billion deal.
The Foschini Group intends to acquire Tapestry Home Brands. Upon the implementation of the proposed transaction, TFG will exercise sole control over Tapestry.
In March, TFG announced that it would acquire Tapestry, which owns Coricraft, Dial-a-Bed, Volpes and The Bed Store, for R2.43bn as it expands into the homeware space. According to the JSE-listed TFG, it will not raise debt to purchase Tapestry.
TFG has a net debt of R800 million, thus the group’s balance sheet will not be stretched by the acquisition.
The approval means TFG will expand its business which will include producing furniture and mattresses.
The TFG Group is an independent chain store group with a diverse portfolio of fashion retail businesses offering clothing, jewellery, cellphones, accessories, cosmetics, luggage, sporting apparel and equipment, homeware, and furniture.
The Tapestry Group is a manufacturer and retailer of household textiles, furniture, bed sets and mattresses. It also offers a portfolio of popular home furnishing consumer brands.
Tapestry owns 175 stores in South Africa, Namibia and Botswana and has manufacturing facilities in Cape Town, Johannesburg and Gqebera, and makes about 47 percent of its products locally.
Following the acquisition, TFG said it would have nine home consumer brands @home, @homelivingspace, Jet Home, Coricraft, Volpes, Dial-a-Bed, The Bed Store, Granny Goose, and Biggie Best, and four vertically integrated factories, mattresses, upholstered furniture, household textiles, duvets and pillows.
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