South Africa-based The Foschini Group (TFG) has signed an agreement to acquire the entire issued share capital of UK womenswear brand Hobbs.
The financial terms of the transaction were not disclosed.
Established in 1981, Hobbs has a network of more than 140 stores throughout the UK and Ireland, in addition to selling its products through its online channel.
A strategic review aimed at improving the business was undertaken in 2015 under the leadership of Hobbs chief executive Meg Lustman.
TFG chief executive Ben Barnett was quoted by media sources as saying: “Meg Lustman and her team have successfully repositioned and reinvigorated the brand, offering an excellent platform for further growth.
“We share their ambitions, not only in terms of maximising the success of their well-established UK presence, but also in their strategic approach towards leveraging the international appeal of the brand, via their physical store portfolio, carefully aligned concession partners and evolving ecommerce proposition.”
Hobbs is a retailer of women’s apparel, shoes and accessories, with revenues of £120m.
In 2014, the retailer reached an agreement to offer its designs in Bloomingdale’s stores, including the store on 59th Street in New York, US.
Last year, Hobbs also opened department store concessions in Germany.
In a statement Foschini said: “The addition of Hobbs to TFG’s existing portfolio of brands will further position TFG as a leading fashion retailer not only in South Africa, but internationally, and will enhance its online presence.”
As an investment holding company, Foschini has business interests in various segments throughout southern Africa, including retail clothing, jewellery, accessories, cosmetics, sporting and outdoor apparel and equipment, and homeware and furniture.