Published By : 03 Dec 2015 | Published By : QYRESEARCH
Truworths, a major South Africa-based retail enterprise, has recently collaborated with Office Retail Group, a U.K.-based company. Truworths acquired around 89% stake in Office Retail Group by paying a whopping US$0.38 bn, as per the official announcement. The South African company is likely to make the acquisition through Shoo 615, the U.K. subsidiary of Truworths. The Office Retail management team is expected to retain almost 11% stake in their collaborative venture.
In the official statement issued by Truworths, the company states that this acquisition marks the entry of South African retailer into the markets in the northern hemisphere.
The stock price of Truworths declined 1.1% in the morning trading session on Nov 30th, 2015 and reached US$6.61. However, the share price of this stock has increased from US$6.24 on Sep 13th, 2015, just before the firm made the announcement regarding its plan to acquire the European company.
Office Retail is one of the leading fashion footwear retail firm in the Republic of Ireland and the U.K. It offers footwear for men, women, and athletes. Major consumers of this retail firm is in the age band of 16 to 25 years.
Founded in 1981, Office Retail Group has grown massively since then to 104 retail stores and 47 franchises in the U.K. and 5 stores in the Republic of Ireland. Office, Poste, Offspring, and Poste Mistress are the brand names under which the company trades.
Office Retail started expanding into continental Europe in 2014 and has opened 6 retail stores in Germany till date. The firm also has a strong presence in the e-commercial sector. Currently, its online business accounts for around 20% of the total sales.