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Johannesburg - Emerging market investor Actis announced the acquisition of a significant minority stake in SA home furnishings retailer Coricraft Group.
The company has assets worth $7.6bn under management and focuses on investments in emerging markets across Africa, Asia and Latin America. To date Actis has invested $1.6bn in the consumer sector.
"Actis’ investment affirms the strength of Coricraft Group’s cash value home retail model and will act as a substantial enabler of future growth. The firm is investing alongside majority shareholders Westbrooke, a local investment group, and Coricraft Group management," Natalie Kolbe, a partner at Actis, said on Tuesday.
READ:Actis invests $65m in Tekkie Town
Coricraft Group CEO Kevin Utian said he is excited at the expansion opportunity the new partnership represents.
“Coricraft Group is the largest cash furniture retailer in the country with a footprint of 115 stores nationally and in Namibia and Botswana. Actis’ international experience in the consumer sector will help drive expansion of our footprint further nationally, into sub-Saharan Africa and beyond,” said Utian.
Coricraft Group, which also owns Dial-a-Bed and Volpes, a home textiles retailer, owns three factories – in Johannesburg, Cape Town and Port Elizabeth. They employ over 2 000 people.
Utian says in the current financial year Coricraft Group will open 22 new stores and will continue expanding its back-end manufacturing and logistics facilities to support the retail growth.
The group’s newest store – a 3 500m² megastore in Kramerville – is the model for future store roll-outs.
The financial terms of the transaction were not disclosed and it remains subject to approval by the competition authorities.
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