TFG acquires Australian menswear group

TFG, the holding company of fashion chain, Foschini, has announced that it will be acquiring menswear group, Retail Apparel Group (RAG). TFG is the latest retailer to enter the Australian market.

TFG CEO, Doug Murray (pictured), has called the move a strategic decision aimed at diversifying income streams. He says that diversifying the business in this manner, through the acquisition of a well-managed company such as RAG, is good business sense.

According to reports, TFG will be settling the deal with cash. The agreed price was capped at seven times RAG's audited normalised earnings before interest, tax, depreciation and amortisation (ebitda) for the year to June 2017, up to a maximum of R3 billion.