The firm advised Navis Capital Partners on its sale of its controlling interest in Retail Apparel Group (RAG) to The Foschini Group (TFG) for approximately $302.5m. The majority stake in RAG, which owns the Tarocash, Connor, yd., Johnny Bigg, and Rockwear brands, was bought by Navis in 2011 from CHAMP Ventures for about $175m.
This is the first major investment of TFG, which is one of South Africa’s largest retailers with sales exceeding $2bn yearly. RAG, which has nearly 400 standalone stores, has bucked the downtrend in Australia’s apparel sector, posting $326.2m in sales in 2016, up 15% year-on-year. The company, which initially planned a $400m float on the ASX, also increased its EBITDA to $36.5m last year, up 19% YoY.
Partners Matthew Coull, Evie Bruce, and Yuen-Yee Cho led the KWM team. They were supported by senior associate Clifford Sandler; solicitors Nicholas Ferrari, Luke Mulcahy, and Kristin Romano; and graduate Alyce Kliese.
Coull said that the effective collaboration of the leadership teams at Navis and RAG facilitated the smooth execution of the transaction.
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King & Wood Mallesons (KWM) advised as a listed South African retailer became the biggest menswear retailer in Australia.