{"id":845973,"date":"2025-12-10T10:00:00","date_gmt":"2025-12-10T08:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=845973"},"modified":"2026-01-15T14:47:32","modified_gmt":"2026-01-15T12:47:32","slug":"south-african-retail-giant-buying-international-company-for-r9-7-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/845973\/south-african-retail-giant-buying-international-company-for-r9-7-billion\/","title":{"rendered":"South African retail giant buying international company for R9.7 billion"},"content":{"rendered":"\n

Mr Price is acquiring European value retailer, NKD GROUP GMBH, in a deal worth around R9.66 billion. <\/p>\n\n\n\n

The group has entered into an agreement to acquire 100% of the shares of Pegasus Group Holding GmbH, which trades as the retail business of NKD Group. <\/p>\n\n\n\n

NKD has a 60-year history of operating a European value apparel and homeware retail business, with its head office in Germany. <\/p>\n\n\n\n

The company has over 2,100 stores across Germany, Austria, Italy, Croatia, Slovenia, the Czech Republic and Poland. It has 10,000 employees.  <\/p>\n\n\n\n

The company generated net sales of \u20ac684.57 million for the financial year ended 31 December 2024.<\/p>\n\n\n\n

\u201cNKD has a clearly differentiated value positioning, targeting quality and price-conscious customers, with a predominantly private label range offering that serves the whole family and carries minimal fashion risk,\u201d said Mr Price. <\/p>\n\n\n\n

\u201cNKD achieves sustainable profitability by operating smaller-format stores with an average store size of 300sqm.<\/p>\n\n\n\n

Mr Price added that the company has lower rental costs as it focuses on smaller towns and has a lean approach to capital expenditure, labour and logistics. <\/p>\n\n\n\n

The group added that NKD\u2019s supply chain strength has supported gross margin expansion, with its technology also allowing for strategic and profit-accretive decision-making. <\/p>\n\n\n\n

It added that NKD\u2019s management team is highly seasoned, with a strong track record and a business culture that aligns with the Mr Price Group. <\/p>\n\n\n\n

\u201cThe Business has identified significant growth opportunities across the seven existing markets in which it operates and has the appetite to pursue long-term sustainable growth across the continent.\u201d <\/p>\n\n\n\n

While massively expanding its store base in South Africa since 2021, the group has researched new areas for growth. <\/p>\n\n\n\n

Research shows that value retailing is outpacing the global total retail market, with value retailing accounting for 22% of the total European retail market. <\/p>\n\n\n\n

The acquisition would boost Mr Price\u2019s revenue to R53 billion, store numbers to over 5,000 and employees to over 40,000. <\/p>\n\n\n\n

\u201cWe have spent a considerable amount of time researching markets and assessing opportunities,\u201d said Mr Price’s CEO, Mark Blair. <\/p>\n\n\n\n

 \u201cAfter meeting the NKD team, it was evident that this was the right business to pursue. Like us, they are value retailers at heart and have a very clear understanding of who their customer is and how to best serve them.\u201d <\/p>\n\n\n\n

\u201cThey are ambitious and performance driven, which is a natural fit to the Mr Price Group culture.\u201d<\/p>\n\n\n\n

The deal’s structure<\/h2>\n\n\n
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NKD is 100% owned by Pegasus, a German limited liability company. Pegasus will then be acquired from UK-based Fliegendes Pferd by Mr Price. <\/p>\n\n\n\n

Mr Price will also acquire the shareholder loan receivables extended to NKD as a borrower. <\/p>\n\n\n\n

The consideration payable by Mr Price for Pegasus is \u20ac415.00 million (about R8.23 billion). This is escalated from the locked-box date of June 30, 2025, at an agreed-upon escalating rate until the transaction’s effective date. <\/p>\n\n\n\n

The enterprise value of NKD, used to derive the base purchase price after adjusting for debt, debt-like items, cash, and net working capital, is \u20ac500 million (approximately R9.92 billion).<\/p>\n\n\n\n

The consideration payable by Mr Price for the shareholder loan receivables is \u20ac38.50 million (approximately R763.87 million) as of the Locked-box Date. It escalates at the applicable rate until the closing date. <\/p>\n\n\n\n

The aggregate of the purchase price of the sold shares and the shareholder loan receivable for the purchase stands at a maximum value of \u20ac487.00 million (approximately R9.66 billion). <\/p>\n\n\n\n

The purchase consideration will be settled in cash, and Mr Price will fund the transaction via a combination of cash resources and debt facilities. <\/p>\n\n\n\n

The deal is expected to go through during the course of Q2 CY2026, subject to regulatory approvals. <\/p>\n\n\n\n

During the six months ended June 30, 2025, NKD reported net sales of 344.00 million (approximately R6.83 billion). <\/p>\n\n\n\n

It recorded a profit after tax, excluding debt and hedging derivative valuation charges of \u20ac6.49 million (approximately R128.68 million). <\/p>\n\n\n\n

The value of the net assets to be acquired as of 30 June 2025 amounts to \u20ac91.14 million (approximately R1.81 billion)<\/p>\n","protected":false},"excerpt":{"rendered":"

Mr Price is acquiring Germany-headquartered NKD for R10 billion, which would take its total stores to over 5,000.<\/p>\n","protected":false},"author":95,"featured_media":845974,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[2910,24355],"class_list":["post-845973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-mr-price","tag-nkd"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/845973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=845973"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/845973\/revisions"}],"predecessor-version":[{"id":847987,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/845973\/revisions\/847987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/845974"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=845973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=845973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=845973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}