South African retail giant Pepkor (PPHJ.J) has announced a strategic expansion into the adult fashion market with the acquisition of Legit, Swagga, Style, and homeware brand Boardmans from privately owned retail group Retailability. This move strengthens Pepkor’s footprint in the adult clothing sector while complementing its already dominant presence in children’s apparel and school uniforms through its PEP and Ackermans brands.

In a statement on Tuesday, Pepkor confirmed that the transaction’s total purchase consideration will amount to less than 2% of its market capitalisation, subject to net working capital adjustments. The deal will be settled in cash.

Based on LSEG data, Pepkor’s market capitalisation stood at 97 billion rand ($5 billion) as of Monday’s close, meaning the acquisition is valued at approximately 1.94 billion rand ($107 million).

The newly acquired businesses operate a total of 462 stores across South Africa, Botswana, Lesotho, Namibia, and Eswatini. These stores will now be integrated into Pepkor’s Speciality business unit, which already operates 941 stores across the same markets.

“The proposed transaction will add significant scale to Pepkor Speciality and enhance its adultwear offerings, particularly in womenswear through the Legit brand,” the company stated.

Over the past year, Pepkor has been actively growing its adult clothing category. The company recently acquired Choice Clothing and launched Ayana, a dedicated womenswear brand. These moves signal a clear strategy to broaden its presence in the adult fashion segment, a shift from its traditional focus on children’s apparel.

Retailability, known for its affordable fashion and lifestyle products, previously made headlines in 2020 when it acquired struggling department store chain Edgars from Edcon, which had entered bankruptcy protection.

Despite selling Legit, Swagga, Style, and Boardmans, Retailability will continue to operate key brands such as Edgars, Edgars Beauty, Red Square, Kelso, and Keedo, ensuring its presence in the Southern African retail space remains strong.

With this latest acquisition, Pepkor solidifies its standing as a retail powerhouse, diversifying its portfolio and increasing its influence in the adult fashion sector across Southern Africa.

Author Credits: MSN