Mr Price Announces The Acquisition Of Studio 88 Group
Mr Price Announces The Acquisition Of Studio 88 Group. Retail Group Mr Price took to LinkedIn to announce that it has acquired Studio 88 Group for R3.3 billion. The company has invested in Studio 88 because it is on its list of brands that it sees growth potential in.
The post read, “We are pleased to announce that on 12 April 2022, we concluded an agreement to acquire the Studio 88 Group. Studio 88 Group is the largest independent retailer of branded leisure, lifestyle and sporting apparel in South Africa. The business owns and operates retail outlets that offer clothing, footwear and accessories, trading through Studio 88, SideStep, Skipper Bar, John Craig and other chains. We are excited about having a branded business in our portfolio.”
In 2021, Mr Price communicated a new long-term strategy, with the vision of becoming the most valuable retailer in Africa. This strategy was informed by extensive strategic research of the South African retail sector, which identified clear opportunities for growth, both organic and acquisitive. The aspirational value segment within the apparel sector was highlighted as an attractive investment area in which the group is currently under-represented. Mr Price has frequently communicated its acquisition criteria and is confident that the Business meets its strict requirements for investment. The group believes that this immediately earnings accretive acquisition fits well into its strategic plans and aligns with its capital allocation thresholds.
Mr Price Group CEO, Mark Blair, said in a statement, “The partnership with Studio 88 Group gives Mr Price an ideal entry into the high growth urbanwear and athleisure segments of the market, which present us with a significant non-competing channel. We will continue to be a predominantly private label group, but our ‘Value Champion’ purpose can also be lived out through the aspirational fashion market, and we are very excited about these prospects.”
Blair continued to say, “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. We also share a similar DNA, both being founder-led businesses intent on offering customers superior value and have high performance cultures.”
