Truworths agreed yesterday to buy clothing retailer Naartjie, the company's second purchase of a children's clothing specialist in as many months.
The cash purchase will add 26 stores to Truworths' 600-plus outlets. The deal has been approved by courts in the US, where Naartjie's owner is involved in bankruptcy proceedings.
On October 7, Truworths announced the purchase of high-end kidswear chain Earthchild Clothing.
"Naartjie has excellent growth potential after an initial consolidation phase and will reinforce our growth prospects in the kidswear market," said Truworths chief executive Michael Mark.
The company planned to improve Naartjie's finances before adding stores and a credit facility. It would then consider expansion outside South Africa.
Truworths shares gained 3.2% to R75.52 at the close in Johannesburg, the biggest jump in three months.
Naartjie started in Cape Town in 1989 and was taken over by US investors in 2001. Naartjie Kids USA has 55 stores which are not included in the Truworths deal.
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