Leading emerging market private equity firm Actis has taken a significant minority stake in Coricraft Group, one of South Africa’s leading home furnishing retailers. The firm is investing alongside majority shareholders Westbrooke, a local investment group as well as Coricraft Group management.
Natalie Kolbe, Partner at Actis, said Coricraft has significant growth potential given the appeal of its high quality, aspirational products to the expanding middle class demographic in South Africa.
“We…look forward to helping the business continue on its growth trajectory organically and through acquisitions…” she said.
Coricraft Group’s portfolio consists of cash retailers, namely Coricraft, Volpes, a retailer of linens, towels and curtains as well as specialist bedding retailer Dial-a-Bed which is acquired in late 2014 as part of the business rescue proceedings for Ellerines Furnishers. The group owns three factories in South Africa–two in Johannesburg and Cape Town which manufacture sofas and one in Port Elizabeth that manufactures home textiles.
Financial terms of the deal were not disclosed and the transaction remains subject to approval by the competition authorities.