Mr Price Group on Monday announced it had entered into an agreement to acquire 100% shares of kitchenware retailer Yuppiechef.
Yuppiechef is a privately-owned South African omni-channel retail business primarily focused on kitchenware.
It runs an online and retail division comprising seven stores, as well as a wholesale division, which develops and imports branded goods for wholesale distribution.
The group said the decision was informed by an extensive period of research which it believes will shape its future growth trajectory.
It said this was part of its strategy to invest in growth opportunities in specific segments of the market through both organic and acquisitive growth avenues.
“Within the homeware market, the opportunity to gain access to a higher LSM customer base, enabling the growth of its share of wallet through aspirational value spending, was identified,” the group said in a statement.
Mr Price CEO Mark Blair said this was an opportunity for the group to expand its ambitions in online retail and enable it to be strategically positioned for further growth.
“We were early adopters of e-commerce in South Africa and our consistent investment has really paid off for us,” Blair said.
“This gives Mr Price the opportunity to access the skills of a highly talented team and service a new customer base.”
The purchase consideration, which represents approximately 1% of market capitalisation, will be settled in cash. The targeted effective date is subject to the fulfilment of both regulatory and commercial suspensive conditions, which includes competition authority approval.
According to the statement, the Yuppiechef management team will continue to run the business with the full support of the group’s executive team.