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Long4Life acquires Rage in R3.92bn deal

26th June 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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Lifestyle brand holding company Long4Life has acquired fashion retailer Rage, and subsequently its more than 1.5-million active customers, for R3.92-billion in cash and shares.

Rage currently has 555 stores countrywide, with a planned roll-out of about 90 new stores a year.

Long4Life says the acquisition provides a unique opportunity for the company to acquire a market-leading company with an aspirational brand that is targeted at the mid-to-lower living standard measure (LSM) market segments, which amplifies Long4Life’s retail product offering to include all LSM market segments.

The purchase consideration will be settled through the issue of 270-million Long4Life ordinary shares at a price of R5.50 apiece, to the value of R1.49-billion.

After this share issuance, the sellers will hold about 22.8% of Long4Life’s entire issued capital.

The balance of the payment will be made in cash, funded through a combination of Long4Life’s internal cash resources and bank debt of about R1.5-billion.

“Rage is an exciting addition to the expanding Long4Life portfolio. We see an opportunity for significant developments in this company’s footwear, apparel and accessory offering.

There is also scope for synergies between our existing brands and Rage, which we believe will offer exciting future growth and position Rage for further market penetration,” comments Long4Life CEO Brian Joffe.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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