advised the owners of the Politix retail fashion business on the sale of the business to the Country Road Group, a wholly-owned subsidiary of South African retailer Woolworths Holdings.
The Clayton Utz
team, led by Melbourne Corporate partner Michael Linehan, advised the vendor on the full transaction process, including transaction strategy, negotiation with bidders and deal execution.
Linehan was supported by senior associate Quentin Reidy and lawyer Kate Allison.
The acquisition, expected to be immediately earnings per share accretive, is subject to a number of customary conditions before completion occurs.
The transaction, which was announced on 5 October 2016, is expected to close on or about 31 October 2016, said Clayton Utz
Politix has 75 stores across Australia which includes outlets inside Myer department stores.
Woolworths – which owns David Jones, a direct competitor of Myer – does not plan to cease operations of Politix outlets inside Myer stores, a report from New.com.au
Country Road and Mimco, brands owned by the South African retailer, also have outlets in Myer department stores.
According to a report from The Australian Financial Review
, sources said Politix was valued at $60m. Woolworths’ Country Road and Politix did not disclose how much the deal was worth.
Woolworths said that the Politix acquisition is in line with its southern hemisphere strategy to build a strong and diversified portfolio of iconic brands.
Politix posted revenues of $56m for its last complete fiscal year.