The Foschini Group Announces The Acquisition Of Tapestry Home Brands
The Foschini Group Announces The Acquisition Of Tapestry Home Brands. The Foschini Group (TFG) has announced that the company has acquired Tapestry Home Brands Proprietary Limited for a purchase consideration of R2.35 billion. TFG is acquiring the Sale Shares from Westbrooke Investments Proprietary Limited, funds managed by Actis, as well as the current and previous management of Tapestry.
The Transaction will provide TFG with exposure to new products and categories as well as new customers that will complement the current TFG customer base in existing categories. Furthermore, Tapestry’s unique business model, with easily scalable local manufacturing and distribution capabilities, is an excellent strategic fit for TFG. According to TFG, the transaction is in line with TFG’s stated strategy of vertical integration in key product categories, and the continued development of its quick response local manufacturing capability. Opportunities exist to further leverage the strength of the manufacturing and sourcing capabilities of both businesses and to continue developing local procurement in a segment dominated by imported goods.
Established in 2005, Tapestry is a prominent direct-to-consumer, vertically integrated designer, manufacturer and omnichannel cash retailer of home furnishings serving consumers’ living and sleeping needs, targeting the middle to upper LSM markets. The Tapestry brands include popular made-to-order furniture retailer, Coricraft; South Africa’s renowned branded bedding retailer Dial-a-bed; home textile retailer, Volpes; and value bedding retailer, The Bed Store. The Tapestry brands are well positioned for growth in the medium to long term.
Tapestry’s own, locally manufactured product accounts for 47% of net sales, employing a total of approximately 2 500 people, with manufacturing facilities located in Cape Town, Johannesburg and Gqeberha. Tapestry operates 175 stores across South Africa, Namibia and Botswana. The three business segments, namely living, linen and bedding, are run on a decentralised basis by a strong management team.
