Mr Price paid 3.3 billion rand ($225.4 million) for a 70 percent stake in the sportswear retail group, which includes private label brands SideStep, John Craig and Skipper Bar.
Studio 88 operates a total of more than 700 stores in South Africa as well as neighbouring countries Botswana, Namibia, Lesotho, Zambia and Mozambique.
The leisure and sporting company also sells brands including Adidas, Converse, Superga and Vans, giving Mr Price “an ideal entry into the high-growth urban wear and athleisure segments,” Mr Price Group chief executive Mark Blair said in a statement.
“What attracts us to the Studio 88 group is their deep understanding of trend conscious South African consumers and their ability to address their needs via their various trading formats,” he added.
The 21-year-old group generated 5.6 billion rand in revenue for the fiscal year ended Sept. 30, 2021, via sales of a mix of brands under license agreements as well as its own private label ranges.
When the acquisition, which is being funded though Mr Price’s existing cash resources, is complete, it is expected to raise Mr Price’s annual revenue to over 28 billion rand and its retail footprint to more than 2,400 stores.
The deal will see Mr Price acquire 100 percent of RMB Ventures’ shareholding in Studio 88 owner Blue Falcon, management will also dispose of 50 percent of their shareholding, allowing Mr Price to pick up those shares. It will eventually acquire the rest of management’s shareholdings over the next four years.
Studio 88 founder Laurence Wernars will continue running the business with his management team.
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