Private equity firm Silverfleet Capital has agreed to sell Office Retail Group, a UK young fashion footwear retailer ,to Truworths International, a South African fashion retailer listed on the Johannesburg Stock Exchange, for GBP256 million.
The closing of the transaction, which is expected to happen in early December 2015, is subject to approval by the South African Reserve Bank.
Silverfleet invested in Office in December 2010 and over the last five years has worked with the management team to establish the company as the leading fashion footwear retailer. Under Silverfleet’s ownership, Office enhanced significantly its e-commerce offering, expanded its retail outlets from 75 to 115 stand-alone stores in the United Kingdom and the Republic of Ireland, including the six it opened in Germany as part of its expansion into Europe. It also increased the number of concessions to 47, which are based in Selfridges, Topshop, Topman and House of Fraser. This rollout programme has created over 1,200 new jobs.
Headquartered in London and founded in 1981, Office has a full multi-channel retail offering, including stores, department store concessions, web-shops, in-store tablets and click & collect services. Total sales in the financial year to January 2015 were GBP270 million and online sales now account for circa 20 per cent of the Company’s overall sales.
Commenting on the transaction, Gareth Whiley, Partner at Silverfleet Capital, says: “Office has been one of the great success stories in shoe retailing and has experienced tremendous growth in a competitive space. It is a fantastic business with an excellent management team whom we have worked with very closely over the past five years. We are delighted with our successful investment in the Company achieving a 3.4x return and wish the team every success in the future.”
CEO of Office, Brian McCluskey, says: “I would like to thank Silverfleet for their support and commitment to our business over the last five years, during which time we have grown significantly in the UK and expanded into Germany. Together with Silverfleet we have grown the business into the success it is today. We are excited to have found a long-term strategic retail partner in Truworths International. We look to further invest in the business and continue our success as part of Truworths International.”
