RMB Ventures has invested in the Studio 88 Group, acquiring a significant minority interest in the branded clothing and footwear retailer.
The diversified private equity investor – a subsidiary of FirstRand Limited – announced the acquisition on Tuesday, although the exact size or value of the purchase was not made public.
The Studio 88 Group has also struck deals with three other investors besides RMB Ventures; those being three of the original four founders of the group, including Laurence Wernars.
Founded eleven years ago by Wernars, the Studio 88 Group trades in sports-lifestyle branded clothing and footwear, with a focus on providing outlets in the emerging markets across the African continent. The group has over 180 outlets – trading through retail outfits known as Studio 88, Skipper Bar, and Side-Step – spanning Botswana, Lesotho, Namibia and South Africa, and plans launches of new retail operations in Mozambique and Zambia.
Explaining the decision to open up the company to investors and sell a significant interest in the hitherto successful company, founder Wernars said: “Despite our success as an independent, stand‐alone business over the past eleven years, we were attracted to RMB Ventures as an institutional shareholder because of the strategic value it can add to the business. In addition, our business philosophies both strongly centre on an owner‐manager culture, which means we approach challenges and opportunities with a similar mind set and a complementary skills set.”
RMB Ventures has echoed this sentiment, highlighting the opportunities inherent in acquiring a stake in the expanding clothing and footwear business – an expansion RMB claims it will fuel through its expansive network of connections across the continent. The company’s Dwight Snyman stated: “The Studio 88 Group is a uniquely positioned retailer in a fast‐growing market segment, led by a dynamic and very successful management team. The transaction positions the business to take advantage of the organic and acquisition‐based growth opportunities that exist both locally and north of our borders.”
The Studio 88 Group sells multiple global branded goods, including products from leading brands Adidas, Puma, Converse, Nike, Guess, Superga and Levis. The group also offers a number of in-house products.
Characterising the investment, RMB’s Snyman added: The transaction combines an entrepreneurial management skill set with the strategic, financial and transactional capability of a first‐tier private equity house.”
