Johannesburg - Retailer Woolworths Holdings [JSE:WHL]
announced on Wednesday that its indirectly-held subsidiary‚ Country Road‚ has
entered into an agreement to acquire the Witchery Group from Gresham Private
Equity for A$172m. Witchery is one of Australia’s leading fashion brands.
The deal is expected to deliver synergies of approximately
A$10m an annualised basis‚ to be achieved over four years‚ Woolworths said.
The transaction will be funded through a combination of acquisition debt of A$92m‚ raised from Australian banks
with no recourse to South Africa‚ and a renounceable rights issue by Country Road to raise up to A$92m of new equity. Country Road is listed in Australia.