South Africa’s AVI has acquired footwear manufacturer and retailer Green Cross, it has been announced.
AVI, whose licenced brands include Lavazza and Douwe Egberts Cafitesse in the food and beverage sector; and fashion names including Kurt Geiger and Lacoste, said the transaction represents a rare opportunity to acquire an established, category-leading brand of relevant scale with a solid record of profitable operations.
AVI said it would work to substantially increase the scale and profitability of Green Cross' operations through increased brand focus, product innovation, enhanced consumer messaging and greater investment in both the business' retail and wholesale operations.
Green Cross was founded in 1975 and is a vertically integrated manufacturer, importer and retailer of ladies, men's and children's footwear in South Africa and surrounding areas. All sales by the business are made under the Green Cross brand, which is owned by Green Cross in South Africa and several other jurisdictions.
Green Cross has production facilities in Epping, Cape Town, and sells its products through a network of 30 retail outlets situated across South Africa. Wholesale sales are made through a network of third party retailers, distributors and agents, accounting for approximately 48 per cent of consolidated turnover in Green Cross' last financial year.
For the financial year ending 29 February 2012, Green Cross posted revenues of R300.6 million, with operating profit after tax of R50.4 million.
AVI’s brand portfolio includes more than 53 brands: 33 owned brands and over 20 international brands under licence. Brands span a range of hot and cold beverages, sweet and savoury snacks, fresh and convenience foods, out-of-home ranges, cosmetics, shoes and accessories, and apparel.
With a turnover of R7.6 billion in FY11, AVI's brands are a household name in South Africa.
