London – DPI, a pan-African private equity firm announced today that ADP II, a pan-African private equity fund advised by DPI, has acquired a strategic minority stake HomeChoice International (“HomeChoice”), a leading omni-channel home shopping retailer in southern Africa, from the majority shareholder in HomeChoice.
Founded in 1985, by Rick Garratt, HomeChoice has operations in South Africa and 5 other countries, Botswana, Lesotho, Namibia, Swaziland and Zambia, with total EBITDA of R450 million as of December 2013 and a customer base of more than one million people. HomeChoice is a home shopping retailer selling homeware merchandise and financial services products to the rapidly expanding urban middle-income mass market in southern Africa.
Since 2009 HomeChoice has grown its revenue at a compound annual growth rate (CAGR) of 24 percent and managed to deliver a CAGR of 47 percent in operating profits.
“HomeChoice is a top quality business with a unique and flexible operating model coupled with an experienced and impressive management team” said Eduardo Gutierrez Garcia, Partner at DPI. He added, “This is yet another exciting firm we are proud to add to our portfolio of companies and look forward to working with HomeChoice and its management team to create growth and value.”
The transaction represents a strong endorsement of HomeChoice’s international strategy and prospects, and its growth aspirations into Africa.
Shirley Maltz, CEO of HomeChoice Holdings Group’ said, “We are pleased that DPI has chosen to partner with us and we believe that their in-depth knowledge and extensive network in Africa will be beneficial to our African expansion.”
DPI’s investment will shortly be followed by a listing of HomeChoice on the JSE in December.
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