Woolworths subsidiary to buy Witchery for AUD172m
Retailer Woolworths Holdings (WHL) announced on Wednesday, 1 August 2012, that its indirectly-held subsidiary‚ Country Road‚ has entered into an agreement to acquire the Witchery Group from Gresham Private Equity for A$172m. Witchery is one of Australia's leading fashion brands.
The deal is expected to deliver synergies of approximately A$10m an annualised basis‚ to be achieved over four years‚ Woolworths said.
The transaction will be funded through a combination of acquisition debt of A$92m‚ raised from Australian banks with no recourse to South Africa‚ and a renounceable rights issue by Country Road to raise up to A$92m of new equity. Country Road is listed in Australia.