(Reuters) – South African retailer Mr Price Group Ltd said it had bought a controlling stake in apparel retailer Studio 88 Group in a 3.3 billion rand ($228 million) deal, as it looks to expand in urbanwear and athleisure segments.
The retailer said on Tuesday it had entered into a deal with the current management of Studio 88 Group and RMB Ventures to buy 70% of Blue Falcon Trading 188 (Proprietary) Ltd, which owns the Studio 88 group of businesses.
“The partnership with Studio 88 Group gives Mr Price an ideal entry into the high growth urbanwear and athleisure segments of the market,” Mr Price Chief Executive Officer Mark Blair said in a statement.
An independent retailer of branded lifestyle, sporting apparel and footwear in South Africa, the Studio 88 Group has been operating in Southern Africa since 2001, according to the company.
The deal will be fully funded through company’s existing cash resources.
($1 = 14.4895 rand)
(Reporting by Bhargav Acharya in Bengaluru; Editing by Emma Rumney and Rashmi Aich)
