LONDON: Brait would pay $1.2 billion (R14.1bn) for virtually all of budget clothes retailer New Look, giving it a substantial presence in Britain’s fiercely competitive fashion retail market, the African investment heavyweight said.
The deal puts Brait, whose top shareholder is South African retail mogul Christo Wiese, in the middle of the crowded British high street, where New Look vies with Primark, part of AB Foods, Next and H&M.
New Look, owned by private equity groups Apax and Permira, as well as founder Tom Singh, has 600 stores in the UK and Ireland and trades from a further 200 stores across Europe, north Africa, the Middle East and Asia, including China, where it wants to expand.
The deal is the second biggest in a month for Brait, one of Africa’s largest investment houses, which is also acquiring fitness chain Virgin Active Health Clubs.
Brait will take a 90 percent equity stake in New Look for £780 million (R14.4bn), giving the retailer an enterprise value of £1.9bn, which includes £1bn in debt.
The remaining stake will stay in the hands of the founding family and management.
