AUSTRALIA: Brazin To Buy Footwear Firm Ghetto
Women's lingerie and swimwear retailer Brazin Ltd on Thursday revealed it had signed an agreement to acquire youth-oriented footwear firm Ghetto for A$3 million.
The owner of the Bras 'N' Things chain said in a news release that the deal for the Melbourne-based operator of nearly 20 stores will also see it pay a deferred consideration of A$2.9m on contributions from 12 planned Ghetto stores.
Ghetto posted a pre-tax profit of A$750,000 in its most recent fiscal year but expects to quadruple that figure this year on increased revenues from a larger store base.
The firm is jointly owned by the private interests of Brazin CEO Brett Blundy and business partner Daniel Agostinelli.
Brazin chairman Barrie Martin said Ghetto was a well-positioned company in a niche growth market and was indicative of the type of new business development Brazin itself would seek to emulate.
"Ghetto is an emerging company in a high growth, high margin sector and board believes this to be a timely investment, " he said.
"Ghetto started as just an idea and has been developed and nurtured into a successful business in a short space of time.
"Our demonstrated expertise in the 'small box' product area makes us the right company to accelerate Ghetto's store roll-out program and provide additional management expertise to firmly establish the company in the lucrative youth retail sector."
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