Specialty Fashion Group Limited
(ASX:SFH) has acquired the business and assets of apparel brand Rivers Australia for $5 million.
The fashion retailer says the purchase will be funded through cash and Rivers’ working capital requirements will be funded through a trade finance facility, drawn down to $27 million on acquisition.
Specialty says the acquisition is part of its long-term growth strategy to expand its footprint in the specialty fashion market and represented its first foray into value footwear, men’s and children’s clothing.
Specialty Fashion Group chief executive officer Gary Perlstein says the move makes business sense as it is a highly complementary acquisition.
All Rivers employees will be offered employment with Specialty as part of the deal.
Specialty Fashion delivered a net profit of $13 million in fiscal 2013.
