Country Road Limited
(ASX:CTY) has agreed to acquire Witchery Australia Holdings Pty Ltd for $172 million.
The Witchery Group which includes the Witchery and Mimco brands, have over 306 stores nationwide.
The acquisition will be funded from a rights issue and a new five year $92 million senior bank facility.
Country Road’s chief says the move would give it a strong foothold in the mid to upper tier specialist retail sector.
The retailer provided its net profit guidance for full year 2012 which it expects to be between $20 and $21 million.
In the first half of the 2012 financial year, Country Road reported a net profit of $10.5 million.
