Over the past decade Tekkie Town has emerged as South Africa's leading, privately owned sports and lifestyle shoe retailer.
The long-awaited transaction will have a positive spin-off for George in that it will create more employment and career opportunities said Director Bernard Mostert on Tuesday.
Actis invests exclusively in the emerging markets with a growing portfolio of more than 70 investments in Africa, Asia, Russia and Latin America. It currently has US$6,5-billion funds under management.
Tekkie Town Executive Chairman Braam van Huyssteen said over the past years the company has vastly increased its market share in South Africa. "I am excited to have Actis on board. With its excellent track record of investing in South Africa and deep understanding of the African retail market, I am confident that together we will develop the business into a multi-national, customer-orientated operation. We have built the business from scratch, taking it from just two to 2 000 employees in under two decades. With this new partnership I look forward to creating more opportunities for the business and all of our employees."
Van Huyssteen has steadily been building up the company from founding it in 2001, to where it today owns 265 stores across South Africa, Namibia and Lesotho. He will remain the executive chairman and will continue to be the majority shareholder. David Cooke, director of Actis, will join the Tekkie Town Board as the third director, in order to play an active role in the growth strategy.
Cooke explained the reasons behind Actis' investment, "Tekkie Town sits at the heart of Actis' consumer-centric approachas a differentiated retail proposition in a high-growth sector, underpinned by the demands of brand and lifestyle-conscious African middle-class consumers.
Actis has a strong track record of backing high-quality, consumer-focused businesses on the continent, including the fabric design company Vlisco Group and food group Edita. To date Actis has invested US$1,6-billion in the sector."
In May this year, the World Economic Forum (WEF), named Tekkie Town one of six South African companies that has the ability to become a global player. During an interview at the time, Van Huyssteen revealed that central to the company's success is its policy to remain totally debt-free.
Mostert said this week that Tekkie Town's disciplined formula for keeping business ''simple''; never leaving anything to chance; and anticipating problems before they occur, has paid off.
Impressive growth
Commenting on the investment, Cooke said, "Braam and his team have built a fantastic business, targeting the consumer segment that aligns with our investment strategy - brand aspirational, emerging middle-class consumers who are looking for quality products at real value. We look forward to partnering with Braam to help the business continue its impressive growth in South Africa and the rest of the continent."
When in George, Van Huyssteen enjoys spending time with his wife Charmaine, daughter Bianca (who is studying to become an accountant), his daughter Lara, who is in Grade 11, and sport-mad son, Braam Jr.
Van Huyssteen is also one of South Africa’s most prominent race horse owners and what little free time he has, he invests in his stable of thoroughbreds.
The Tekkie Town team members based at the company's head office in George, are excited about its expansion into Africa. The growth of the company bodes well for employees and offers them new job opportunities within the group.
Photo: Wessel van Heerden
ARTICLE: PAULINE LOURENS, GEORGE HERALD JOURNALIST
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