TFG picks up UK retailer White Stuff, eyes unified local platform
Foschini owner TFG on Friday announced the acquisition of UK-based fashion and lifestyle retailer, White Stuff, in a move that it says will allow it to create a unified platform in the country, largely mirroring its platform structure in South Africa and Australia.
The acquisition was made through the London subsidiary of TFG, which has a portfolio of 35 retail brands in 23 countries and over 4 700 stores. The White Stuff brand joins UK-based fashion brands already owned by TFG, such as Hobbs, Whistles and Phase Eight.
No figure was given for the transaction, meaning that it is less than 5% of its R49.5 billion market value - or less than about R2.5 billion. Founded in 1985, White Stuff specialises in unique, thoughtfully designed clothing and accessories for women, men and children, the group said in a statement.
White Stuff has 113 stores and 46 concessions in the UK – within John Lewis, Marks & Spencer and other quality independent retailers. The business also operates six stores and 25 concessions across Europe. White Stuff also retails online internationally and has 606 wholesale stockists – 178 in the UK and Ireland and 428 internationally. Online sales currently contribute 43% of total sales.
Significant milestone
TFG CEO Anthony Thunström said in the statement that the acquisition marks a significant milestone in TFG London's medium-term strategy to achieve critical mass and to add new brands into the group, having first acquired Phase Eight in 2015, and later, acquisitions of Whistles and Hobbs.
The group said TFG London will now be in a position to create a unified retail platform in the UK, which largely mirrors its platform structure in Africa and Australia. This refers to customers being offered a single sales point, such as through its successful Bash platform in South Africa.
"This acquisition represents a meaningful build out of our London business, adding close to 50% to TFG London's turnover," he said.
"White Stuff is a prominent high brand-equity business in the UK, and has potential for strong, sustained growth. We are excited about its prospects and very pleased to be retaining the experienced senior management team led by CEO Jo Jenkins," said Thunström. Jenkins said TFG London would be the ideal owner for the business because of the value of White Stuff's brand and the wealth of premium retail experience in the business.
"This is a very exciting moment for White Stuff and represents the natural next step for our business. It builds on the hard work and success the brand has achieved in recent years."
Shares of TFG were up about 0.3% on Friday afternoon and have risen almost 50% in the past year.
-FIN24
The acquisition was made through the London subsidiary of TFG, which has a portfolio of 35 retail brands in 23 countries and over 4 700 stores. The White Stuff brand joins UK-based fashion brands already owned by TFG, such as Hobbs, Whistles and Phase Eight.
No figure was given for the transaction, meaning that it is less than 5% of its R49.5 billion market value - or less than about R2.5 billion. Founded in 1985, White Stuff specialises in unique, thoughtfully designed clothing and accessories for women, men and children, the group said in a statement.
White Stuff has 113 stores and 46 concessions in the UK – within John Lewis, Marks & Spencer and other quality independent retailers. The business also operates six stores and 25 concessions across Europe. White Stuff also retails online internationally and has 606 wholesale stockists – 178 in the UK and Ireland and 428 internationally. Online sales currently contribute 43% of total sales.
Significant milestone
TFG CEO Anthony Thunström said in the statement that the acquisition marks a significant milestone in TFG London's medium-term strategy to achieve critical mass and to add new brands into the group, having first acquired Phase Eight in 2015, and later, acquisitions of Whistles and Hobbs.
The group said TFG London will now be in a position to create a unified retail platform in the UK, which largely mirrors its platform structure in Africa and Australia. This refers to customers being offered a single sales point, such as through its successful Bash platform in South Africa.
"This acquisition represents a meaningful build out of our London business, adding close to 50% to TFG London's turnover," he said.
"White Stuff is a prominent high brand-equity business in the UK, and has potential for strong, sustained growth. We are excited about its prospects and very pleased to be retaining the experienced senior management team led by CEO Jo Jenkins," said Thunström. Jenkins said TFG London would be the ideal owner for the business because of the value of White Stuff's brand and the wealth of premium retail experience in the business.
"This is a very exciting moment for White Stuff and represents the natural next step for our business. It builds on the hard work and success the brand has achieved in recent years."
Shares of TFG were up about 0.3% on Friday afternoon and have risen almost 50% in the past year.
-FIN24
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