Coricroft Group announces acquisition of Dial-a-Bed
Marketing 1174
Coricraft Group, South Africa’s leading cash furniture retailer, is set to expand further with its proposed acquisition of South Africa’s largest bedding specialist Dial-a-Bed. The acquisition will enable the group to further extend its home offering as well as double its national store footprint to almost 120 stores.
This latest move follows on the heels of Coricraft Group’s purchase of linen specialist, Volpes, earlier in 2014.
The group will purchase Dial-a-Bed from the business rescue proceedings of Ellerine Holdings, and scooped the attractive asset after a competitive bidding process. Group CEO Kevin Utian says the Coricraft Group’s significant infrastructure, performance track record and proven job creation credentials made it the forerunner in the process.
Dial-a-Bed is the established category leader in specialist bedding, stocking well-known brands such as Sealy, Simmons, Forty Winks, Dunlopillo and King Koil. The business has an active online presence in addition to its wide retail footprint across the country.
Utian says the strategic move is an exciting opportunity for the group and consumers. “The acquisition fits with our strategy to lead the cash value furniture space by offering customers value and an enjoyable shopping experience. Dial-a-Bed’s mattress volumes present an ideal platform to promote our bedroom furniture and Volpes’ home linen, in which the group has a strong foothold.”
Looking ahead he says the synergies in product, customer profile and retail model will be leveraged to further grow Dial-a-Bed. He adds that the group intends to continue investing in its people, stores and marketing to entrench its leadership position as well as ensure that all customers, including Dial-a-Bed’s, can benefit from the service levels for which the group’s existing brands are known.
The acquisition is the most recent milestone in the Coricraft Group’s growth trajectory. It has expanded its product categories as well as driven its retail footprint to reach 62 stores (pre-acquisition) in high visibility sites across South Africa and neighbouring countries. The group is vertically integrated and the retail footprint is supported by significant back-end facilities. Utian concludes that the increasing shift from credit retailing to the value driven cash market is rapidly gaining traction, to the group’s benefit.
It is anticipated that the acquisition should be finalised shortly once the conditions precedent have been fulfilled.
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