The owner of Tarocash, yd., Rockwear and other apparel chains will be sold to a South African retailer in a deal that values the Australian company at $302.5 million.
The Foschini Group said on Thursday that it would buy 100 per cent of Retail Apparel Group, which will become a fully-owned subsidiary by the third quarter of this calendar year.
RAG has 400 stores across its portfolio of brands, which also includes Connor and Johnny Bigg.
Private equity group Navis Capital bought 75 per cent of RAG in 2011 and had been preparing to list it on the ASX. The remainder was owned by founder Stephen Leibowitz and company managers, who are also selling their stakes.
While pitching to investors, RAG reportedly said its like-for-like sales were up 8.8 per cent last year and earnings were $36 million.
RAG said on Thursday it was posting double-digit revenue and profit growth this year.
"We are delighted to become partners with one of the world's leading retail groups," RAG chief executive Gary Novis said.
The Foschini Group owns 22 retail brands and has more than 3000 outlets across Africa and in other regions.
