Press Release
FOR IMMEDIATE RELEASE
London, 1 December 2014
DPI ACQUIRES STAKE IN LEADING HOME SHOPPING RETAILER IN SOUTHERN AFRICA
London – DPI, a pan-African private equity firm announced today that ADP II, a pan-African private equity fund advised by DPI, has acquired a strategic minority stake HomeChoice International (“HomeChoice”), a leading omni-channel home shopping retailer in southern Africa, from the majority shareholder in HomeChoice.
Founded in 1985, by Rick Garratt, HomeChoice has operations in South Africa and 5 other countries, Botswana, Lesotho, Namibia, Swaziland and Zambia, with total EBITDA of R450 million as of December 2013 and a customer base of more than one million people. HomeChoice is a home shopping retailer selling homeware merchandise and financial services products to the rapidly expanding urban middle-income mass market in southern Africa.
Since 2009 HomeChoice has grown its revenue at a compound annual growth rate (CAGR) of 24 percent and managed to deliver a CAGR of 47 percent in operating profits.
“HomeChoice is a top quality business with a unique and flexible operating model coupled with an experienced and impressive management team” said Eduardo Gutierrez Garcia, Partner at DPI. He added, “This is yet another exciting firm we are proud to add to our portfolio of companies and look forward to working with HomeChoice and its management team to create growth and value.”
The transaction represents a strong endorsement of HomeChoice’s international strategy and prospects, and its growth aspirations into Africa.
Shirley Maltz, CEO of HomeChoice Holdings Group’ said, “We are pleased that DPI has chosen to partner with us and we believe that their in-depth knowledge and extensive network in Africa will be beneficial to our African expansion.”
DPI’s investment will shortly be followed by a listing of HomeChoice on the JSE in December.
Ends
Media Contacts
Meglena Petkova
Lansons Communications
Landline: +44 (0)2072943619
For further information kindly contact
Eduardo Gutierrez Garcia (Partner)
T: +44 (0) 207 349 5030; E:
Takudzwa Mutasa (Vice President)
T: +44 (0) 207 349 5030; E:
About the HomeChoice Group
The HomeChoice Group is a leading home shopping retailer selling homeware merchandise and financial services products to the rapidly expanding urban middle-income mass market in southern Africa. Established in Cape Town in 1985, the group has developed into an omni-channel home shopping retailer offering products through mail order (catalogue), electronic channels (Internet and mobile phone) and telemarketing (call centres). The business operates in South Africa and in the neighbouring countries of Botswana, Lesotho, Namibia, Swaziland and Zambia. In the financial year to December 2013 the group generated revenue of R1.6 billion and EBITDA of R450 million.
www.homechoiceholdings.co.za
About DPI
DPI (Development Partners International LLP, together with its associates) is a leading pan-African private equity group founded in 2007 to source, implement and manage private equity investments in Africa.
DPI’s team has extensive hands-on private equity and investment experience across Africa since 1990, with combined African investment experience of over 100 years. DPI combines a value investing orientation with a disciplined, process-led investment style, uncovering unique and exclusive investment opportunities in rapid growth economies and sectors throughout Africa. DPI is an engaged investor working closely with portfolio companies in order to create value.
DPI currently advises two pan-African private equity funds, African Development Partners I (“ADP I”) and African Development Partners II (“ADP II”).
www.dpi-llp.com
DPI is authorised and regulated by the Financial Conduct Authority (“FCA”) in the UK under FCA registration number 477782.