Navis to sell Australia’s Retail Apparel to The Foschini Group

The deal is expected to close in the third quarter of 2017. RAG’s current management, including CEO Gary Novis, will remain with the company.

RAG is a leading specialty clothing retailer in Australia and New Zealand, with over 400 stores across both countries. Its offerings range from specialty menswear to sports clothes across brands including Tarocash, Johnny Bigg and Rockwear. Foschini has more than 3,000 stores around the world, selling men’s and women’s clothing, jewelry, homewares and sporting goods. The RAG purchase is intended to give it an entry into Australia.

Navis acquired RAG in 2011 for an undisclosed amount through a management buy-in that saw previous backer CHAMP Ventures exit. The firm has focused on expanding RAG’s store network and launching or acquiring new brands.

Navis had reportedly hoped to take RAG to an IPO later this year, but changed course for a trade sale amid concerns about weakened consumer spending and reports of online retailer Amazon’s intentions to increase its focus on Australia.

Navis is in the process of exiting its sixth Asia fund, which closed in 2008 at A$1.2 billion. The GP sold its stake in early childhood education provider Guardian Early Learning Group to Partners Group last February, and KKR supported the management buyback of Indian automotive graphics maker Classic Stripes in April.

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• Topics
• Australasia
• Consumer
• Trade sale
• Australia
• Navis Management
• Exit