In March this year, Mr Price announced that it entered into an agreement with Yuppiechef to acquire 100% of the privately-owned kitchen and homeware retailer. The purchase consideration will be settled entirely in cash.
Mr Price said at the time that it had identified the opportunity in the homeware market to gain access to a higher LSM customer base, enabling growth of its share-of-wallet through aspirational value spending.
It said the Yuppiechef acquisition would allow it to expand in South Africa through an established, high-growth omnichannel brand. "Profitability is a key factor in the group’s consideration of any venture, and it is satisfied with Yuppiechef’s positive bottom-line performance and prospects for margin expansion," the company said.
Earlier this month, the Competition Commission recommended that the Competition Tribunal approve the proposed transaction without conditions, saying that the deal is unlikely to result in a substantial prevention or lessening of competition in any relevant markets, and does not raise any public interest concerns. The Tribunal announced its approval this week.
Andrew Smith and Shane Dryden founded Yuppiechef in Cape Town in 2006 with a vision to build a platform for the distribution of aspirational kitchen and homeware brands. After initially operating solely online, the company expanded to physical retail in 2017 with the opening of its first store in Tygervalley.
Today, the omnichannel business has two primary operations, namely Yuppiechef Online, the retail division comprising the online platform and seven stores, as well as a wholesale division, which develops and imports branded goods for wholesale distribution.
Mr Price confirmed in an announcement to shareholders yesterday that its acquisition of Yuppiechef comes into effect on 1 August 2021, and that the Yuppiechef management team will continue to run the business with the full support of the group’s executive team.
Mark Blair, Mr Price Group CEO, said: “Welcoming Yuppiechef into the group is a very exciting moment for us. This gives us the opportunity to serve a new customer base and grow the skills within our group. We share a similar culture and outlook for growth and look forward to taking hold of opportunities together.”