Mr Price buys Yuppiechef for R470 million
The all-cash deal will allow Mr Price to access higher LSM clients.
Mr Price has reached an agreement to buy 100 percent of Yuppiechef in a R470 million cash deal. The purchase consideration represents approximately 1 percent of market capitalisation and will be settled subject to regulatory and commercial conditions, including competition authority approval.
Speaking on the acquisition, Mr Price CEO Mark Blair said:
“We are very excited about welcoming the Yuppiechef team into our family. As a founder-led business, they share our entrepreneurial roots, and we are eager to realise the company's ambitions jointly.”
Yuppiechef, founded in 2006, is a privately-owned South African retail business that sells aspirational kitchen and homeware brands. The company has two primary operations, Yuppiechef Online, which includes seven retail stores, and a wholesale division responsible for developing and importing branded goods for wholesale distribution.
Last November, Mr Price announced its ambitions to invest in growth opportunities in specific market segments, through organic and acquisitive growth avenues. Within the homeware market, the opportunity to gain access to a higher LSM customer base was identified.
“We are partnering with a market-leading business which has won numerous awards relating to both e-commerce and stores, and Yuppiechef has a proven ability to launch private-label categories which have also attracted industry recognition,” said Mark.
Yuppiechef’s retail division represents 85 percent of turnover, 70 percent of which is derived from e-commerce. The omni-channel business cemented its position as a pioneer of online retail in South Africa by consistently winning awards throughout its history.
In 2019, Yuppiechef was voted Digital Company of the Year at the South African National Business Awards and took home the Best Independent Retailer Store Design title at the SACSC Retail Design & Development Awards.
The mutually beneficial deal will create access to the highly talented e-commerce team’s skills while offering Mr Price the opportunity to service a new customer base. The company’s growth plans include significantly broadening the product assortment and expanding physical presence beyond the currently limited number of stores.
“We were early adopters of e-commerce in South Africa, and our consistent investment has paid off for us. Yuppiechef gives us another platform to escalate our ambitions in online retail and enables us to be strategically positioned for further growth,” said Mark.
Yuppiechef will benefit from Mr Price’s financial strength. Co-founder and CEO of Yuppiechef Andrew Smith said:
“I am excited about our future as a part of the Mr Price Group. They are a business that prides itself on innovation and growth, and we are strategically aligned in our plans. We share similar cultures and values, which will make this an easy fit for both parties.”
The Yuppiechef management team will continue to run the business with the full support of the group’s executive team.