Mr Price Group Limited (Mr Price Group), one of the largest publicly listed retail groups in South Africa, is acquiring the NKD Group GmbH (NKD) from private equity firm TDR Capital LLP (TDR). Both parties have signed a purchase agreement; the completion of the transaction remains subject to customary regulatory approvals.
Over the past seven years, NKD has written a remarkable success story under the ownership of TDR. The company has significantly strengthened and secured its position as a leading European value textile discounter.
NKD has elevated the quality of its products and processes across the entire supply chain to ensure a strong customer shopping experience. By expanding and optimizing its store portfolio, the company has built a solid foundation for sustainable, long-term growth.
A key driver of this development has been the increasing use of data science: numerous processes along the entire value chain have been optimized through data-driven decision-making. At the same time, NKD has systematically expanded its digital ecosystem. For example, through the successful launch of the NKD app in Austria, thereby significantly advancing its omni-channel strategy.
Setting the Course toward the 4,000th Store
With this strong foundation in place, NKD is ready for the next major step. The new owner Mr Price Group opens up additional opportunities for NKD. Mr Price Group understands retail, knows the dynamics of the market, and shares NKD’s focus on value and flexible, scalable growth platform. The acquisition marks the beginning of a new phase of expansion for NKD.
In the medium term, NKD plans to expand its store network to 3,000 locations, sending a strong signal for organic growth across Europe. In the long term, the aim is to reach 4,000 stores across Europe. The combination of a clear market positioning, a strong and flexible store network makes NKD an ideal platform for Mr Price Group to strategically expand its presence in the European market.
Both companies complement each other perfectly – a connection that will create strong momentum for the years ahead, which will be characterized by growth, strength, and new opportunities.
Mark Blair, CEO of Mr Price Group Limited:
“NKD is a great fit for our growth strategy. With a strong store network, a clear value-for-money positioning, and excellent digital capabilities, NKD is ideally positioned to further expand its omni-channel business. We look forward to working with its talented team and guiding the NKD Group into its next phase of growth together.”
Alexander Schmökel, CEO of the NKD Group:
“We are excited to become part of Mr Price Group Limited. With a clear vision and strong commitment, we can sustainably expand our market position in Europe. Together with our new owner, with a background in the retail sector, who understands our industry, we will rigorously execute our growth plans. The expertise on both sides will help us continue our successful trajectory. We would like to thank TDR Capital for the excellent partnership, which has been instrumental in advancing our development as a data-driven value textile discounter.”
Jonathan Rosen, Partner, and Linda Zhang, Partner, at TDR Capital:
“We are proud of the scale, innovation and momentum that NKD has built up during our seven-year partnership. The company’s progress is a testament to its talented management team, compelling product proposition, and the embedded data science capabilities that have helped turbo charge its growth. Mr Price Group is the ideal long-term home for NKD, offering a highly complementary platform within a market-leading value retail group that shares NKD’s ambitions for continued growth and innovation.”
About Mr Price Group Limited
With a 40-year legacy, Mr Price Group has grown into a leading South African fashion-value retailer. Through its 15 retail chains, the group operates as a cash-based, omni-channel business via online channels and 3,100 stores across apparel, homeware, sportswear, financial services and telecoms. In 2021, the group launched a new vision to become the most valuable retailer in Africa by market capitalisation. Guided by its strategic growth plan, it increased its capital expenditure and invested in two new organic concepts and three South African acquisitions – expanding its customer reach and strengthening its position in the South African market. Concurrently, the group conducted extensive research to identify new growth opportunities in support of its next phase of growth. This led to the identification of the NKD Group GmbH as the first step in this phase which will support its journey towards achieving its long-term vision.
About TDR Capital
TDR Capital LLP is a leading European private equity firm with over €15 billion of assets under management. Founded in 2002, TDR typically acquires majority stakes in strong, market-leading European companies with the potential for robust growth and resilience throughout economic cycles.
The firm has managed five European mid-market buyout funds. The team of 61 professionals currently manages assets across four European mid-market buyout funds from its headquarters in London. To date, the firm has made 27 platform investments, and its portfolio companies employ over 270,000 people around the world.
TDR takes a long-term approach to investment and, in addition to capital invested, also provides expert resource to help drive sustainable value creation and positive, transformational change within the businesses it owns. For more information, visit tdrcapital.com
