Craven House acquires stake in South African distribution firm

19th Mar 2014 08:46

Investment firm Craven House has acquired a 49 per cent stake in Depston 1, a South African import and distribution business which specialises in sporting goods. As part of the $2m deal, the shareholders of Depston have agreed to subscribe for 96m new ordinary shares for 1.25p per share, amounting to a total subscription of £1.2m. Depston, which has exclusive distribution rights across South Africa for two major international sporting brands, operates through two subsidiaries, Trek Distribution and Craft Distribution, and has 22 employees.For the year to May 2013, revenue was equivalent to around £2.4m, with a significant increase in revenues forecast for the current year.Mark Pajak, Acting Chairman, said: "We are delighted to announce this investment, which represents an outstanding opportunity to become involved in the import and distribution business in South Africa. "[The firm's] management have a long and successful track record in sales and distribution to the retail clothing industry in South Africa. The two high-profile brands already signed-up [...] provide an excellent platform to expand its business and attract further sports retailers to the region. "Once again we are delighted to have completed a transaction utilising the company's shares as acquisition currency."NR