Steinhoff International has concluded an agreement to acquire Tekkie Town in an undisclosed deal, giving private equity investor Actis a full exit from its 42.5% stake in the South African shoe retailer which it acquired for $65 million in November 2014.
The deal is the latest of a slew of transactions undertaken by the South African holding company which has been pursuing an aggressive acquisition expansion program this year. The fact that Actis is exiting the stake somewhat earlier than the typical five to seven year holding period combined with Steinhoff’s determination to secure some of the other acquisition targets this year has led to speculation that the integrated retailer offered an attractive premium to take control of the firm.
Steinhoff will support Tekkie Town’s expansion out of South Africa with capital and expertise. At the time of the investment by Actis, Tekkie Town operated a 265 stores in South Africa, 10 in Namibia and 1 in Lesotho. Today, the retailer operates a total of 302 stores, 15 of which are in Namibia and 2 in Lesotho.
The deal, which subject to approval by the Competition Commission, is expected to close by the end of the year.