Lewis Furnitures To Acquire Struggling Retailer Beares

 Mzwandile Jacks Investing, M & A

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VENTURES AFRICA – JSE-listed furniture retailer, Lewis Stores, on Friday said it had submitted an offer to acquire high-end furniture retailer, Beares, from Ellerines, the struggling furniture maker owned by the ailing African Bank Investments Limited (ABIL).
Lewis said business rescue practitioners, acting on behalf of Ellerines, had accepted the offer and agreed to negotiate on an exclusive basis with a view to concluding a binding sale.
The purchase price has been determined with reference to the value of intellectual property, fixed assets and stock. The companies however opted against disclosing the purchase price.
Johan Enslin, CEO of Lewis Group, said the rationale for this
acquisition is that Beares is a strong and well-established brand across South Africa with a history dating back 80 years.
“The acquisition of Beares aligns with our strategy of gaining access to higher LSM customer groups and will also enable existing Lewis customers to migrate upwards to the Beares brand,” Enslin said.
“Beares has a loyal customer base and we believe offers exciting growth prospects in the medium-term. On approval of the transaction we plan to integrate the business into Lewis Group’s store, merchandise, supply chain and credit operations,” Enslin added.
Lewis said an update on the deal will be provided with the announcement of Lewis Group’s interim results on 10 November 2014.