South African budget retailer Mr Price Group has said that it would buy privately-owned kitchenware company Yuppiechef in a cash deal, to bolster its online presence and premium offerings.
Without revealing the deal size, Mr Price said the purchase consideration for the South African omni-channel retailer represents about 1% of its market capitalisation.
Mr Price Group’s current market cap is 47.29 billion rand ($3.17 billion), according to Refinitiv Eikon.
The budget clothing and homeware retailer has been looking to expand its market share and has rolled out new product lines to shore up sales and build its online strength, even as many brick-and-mortar retailers succumb to the COVID-19 crisis.
“Yuppiechef gives us another platform to escalate our ambitions in online retail and enables us to be strategically position for further growth,” Mr Price chief executive officer Mark Blair said.
Founded in 2006, Yuppiechef has two primary operations – a retail division comprising seven stores and an online platform, and a wholesale division, which develops and imports branded goods for wholesale distribution.