Pepkor Makes Offer for South African Furniture Owner
Pepkor Makes Offer for South African Furniture Owner
Pepkor Holdings Ltd. has made an approach to buy the South African owner of the Volpes, Coricraft and Dial.a.Bed chains to further expand in furniture and bedding, according to people familiar with the matter.
Africa’s largest clothing retailer is one of a handful of bidders for Tapestry Home Brands Ltd., as private-equity firms Actis LLP and Westbrooke Alternative Asset Management Pty Ltd. look to exit, said the people, who asked not to be identified as the process is ongoing. The sellers currently value the company at between $250 million to $300 million and there is no certainty a deal with Pepkor will be reached, one of the people said.
Pepkor is prepared to pay 2.4 billion rand ($152 million) and is unlikely to raise the price, a second person said.
Pepkor and Actis declined to comment. Westbrooke couldn’t immediately be reached for comment.
The Foschini Group Ltd., an acquisitive Cape Town-based clothing rival that bought the Jet chain in 2020, declined to comment on whether it has or plans to make a bid.
Pepkor, whose chains include Ackermans, Russells and Sleepmasters, has significantly reduced its debt and begun a process to refinance 5 billion rand due in 2023. The company, based on the outskirts of Cape Town, is highly cash generative with 93% of sales in its most recent fiscal year made in cash. In the clothing segment, Pepkor is a low-cost specialist.
Pepkor shares traded 1.1% lower as of 2:24 p.m. in Johannesburg, and have gained 70% this year.
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