South African retail giant Mr Price is set to make its European debut with the acquisition of German value retailer NKD Group GmbH in a deal worth $570 million.
- South African retail giant Mr Price plans to acquire German-based retailer NKD Group GmbH for up to $570 million.
- The acquisition aims to expand Mr Price’s presence into the European market, representing a significant transaction by an African company.
- Funding for the deal combines internal cash reserves and debt facilities, showing a strategic financial approach.
- The acquisition will increase Mr Price’s annual revenue and store count, but investor sentiment highlights previous challenges with overseas expansions.
South African retail giant Mr Price has announced a major expansion move with an agreement to acquire German-based value retailer NKD Group GmbH in a deal valued at up to $568 million.
The acquisition marks Mr Price’s entry into the European market and stands as one of the most significant outbound retail transactions by an African company in recent years.
Deal Structure and Funding
Under the agreement, Mr Price will acquire 100% of the shares of Pegasus Group Holding GmbH, the company through which NKD operates, along with income from shareholder loans.
The transaction will be financed through a mix of existing cash reserves and debt facilities, reflecting the group’s strategic approach to funding.
Strategic Fit and Value Proposition
The move aligns closely with Mr Price’s business model. “NKD has a clearly differentiated value positioning, targeting quality and price-conscious customers, with a predominantly private label range offering that serves the whole family and carries minimal fashion risk,” the group said.
CEO Mark Blair added, “After meeting the NKD team, it was evident that this was the right business to pursue. Like us, they are value-retailers at heart and have a very clear understanding of who their customer is and how to best serve them.”
This alignment suggests that the companies share a similar philosophy in value retailing, enhancing the potential for synergies.
NKD’s European Footprint
Founded more than 60 years ago, NKD operates 2,108 stores across seven Central and Eastern European countries, including Germany, Austria, Italy, Croatia, Slovenia, the Czech Republic and Poland.
The company employs around 10,000 people and reported €684.57 million in net sales for the financial year ending 31 December 2024.
Notably, market data shows that value retail is expanding faster than the broader European market and now accounts for about 22% of the sector, signalling strong growth potential for Mr Price.
Financial Details of the Acquisition
In recent years, Mr Price had taken a cautious approach to foreign markets, retreating from Nigeria, Australia, and Poland. However, the NKD deal, expected to close in the second quarter of 2026 pending regulatory approvals, signals a renewed strategic push into international growth.
The transaction comprises a purchase price of €415.00 million ($468 million) for Pegasus, escalating from the locked-box date of 30 June 2025, along with €38.50 million ($43 million) for shareholder loan receivables, bringing the total maximum value to €487 million ($568 million).
With NKD included, Mr Price’s annual revenue is expected to rise to about $3.12 billion, up from roughly $2.40 billion, and its store count will expand from around 3,100 to more than 5,000.
