JSE-listed clothing retailer, Foschini Group, on Friday said it had acquired 85 percent of the UK-based women clothing retailer, Phase Eight, for R2.5 billion ($216.8 million).

Foschini acquired Phase Eight because the company has achieved consistent growth in sales and profitability through continuous incremental evolution of the brand’s operating model, product breadth and routes to market.

It said Phase Eight had a good track record of being highly profitable and cash generative. Phase Eight is also a multi-channel business with an established e-commerce platform and also has an experienced and self-sufficient management team.

The company also has strong growth prospects, arising from its established position in the UK and opportunities to further expand in global developed and emerging markets. The Acquisition is unconditional and is not subject to any regulatory approvals, Foschini said.

Phase Eight was established in 1979 and operates as a retailer of clothing, footwear and accessories for women. Its target market is 35-55 year old women in the ABC1 demographic which, in South African terms, would broadly translate into the mid to upper LSM grouping. It has 107 stores and 203 concessions throughout the United Kingdom and Ireland.

It also has 15 stores and 113 concessions in 16 international markets including Germany, Switzerland, Sweden, the Netherlands, the Middle East, Hong Kong, Singapore, Malaysia and Australia. In total, Phase Eight trades out of 438 outlets globally.

Phase Eight also has an established footprint in department stores in the countries in which it operates with strong relationships with John Lewis, House of Fraser and Debenhams in the UK and partners including Ahlens, Alshaya, Breuninger, de Bijenkorf, El Palacio de Hierro, Karstadt, Manor and Tangs in international markets.