Retail group TFG has acquired British fashion and lifestyle retailer White Stuff for an undisclosed sum in a move it says will help it to reach critical mass in the UK.
In a note to investors on Friday, TFG said the transaction was concluded through its TFG London business and would be funded from the existing banking facilities of the UK business.
Established in 1985, White Stuff specialises in “unique, thoughtfully designed clothing and accessories for women, men and children”. The company has 113 stores and 46 concessions in the UK within John Lewis, Marks & Spencer and other quality independent retailers.
Anthony Thunström, TFG’s CEO, said the acquisition was a milestone for the group’s medium-term strategy to achieve critical mass in the UK.
“This acquisition represents a meaningful build out of our London business, adding close to 50% to TFG London’s turnover. White Stuff is a prominent high brand-equity business in the UK, and has potential for strong, sustained growth. We are excited about its prospects and very pleased to be retaining the experienced senior management team led by CEO Jo Jenkins,” he said.
“TFG London will now be in a position to create a unified retail platform in the UK, which largely mirrors our platform structure in Africa and Australia.”
He explained the transaction added new brands to the group, having first acquired Phase Eight in 2015, and later Whistles and Hobbs.
White Stuff also operates six stores and 25 concessions across Europe. The brand sells internationally via its website and has 606 wholesale stockists, 178 in the UK and Ireland and 428 globally. Online sales now contribute 43% of total sales.
TFG said White Stuff had a solid track record of financial performance.
In the financial year to end-April, the business reported revenue of £154.8m (R3.5bn) and earnings before interest, tax, depreciation and amortisation of £8.6m. Over 85% of revenue was generated from the store estate and online, with the remainder from its international and wholesale operations.
The transaction is unconditional, in line with the terms of the agreements, and was concluded with an effective date of October 25.
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