South African retail giant Mr Price Group has announced a major international expansion move with the acquisition of NKD Group GmbH, a leading European value apparel and homeware retailer. The transaction, valued at approximately R9.66 billion, represents one of Mr Price’s most significant strategic investments to date.
Mr Price has entered into a definitive agreement to acquire 100% of the shares in Pegasus Group Holding GmbH, which owns and operates NKD Group. The acquisition also includes the purchase of shareholder loan receivables extended to NKD.
- Purchase Price for Shares: €415 million (≈ R8.23 billion), subject to escalation from the locked-box date of 30 June 2025 until closing.
- Shareholder Loan Receivables: €38.5 million (≈ R763.87 million), also subject to escalation.
- Enterprise Value: €500 million (≈ R9.92 billion), adjusted for debt, cash, and working capital.
- Total Consideration: Up to €487 million (≈ R9.66 billion), payable in cash.
- Funding: Combination of internal cash resources and debt facilities.
- Expected Closing: Q2 CY2026, subject to regulatory approvals.
Founded over 60 years ago, NKD has established itself as a trusted value retailer in Europe, offering affordable apparel and homeware for the entire family. Headquartered in Germany, NKD operates:
- 2,100+ stores across Germany, Austria, Italy, Croatia, Slovenia, Czech Republic, and Poland.
- 10,000 employees serving millions of customers.
- Net Sales (FY2024): €684.57 million.
- Net Sales (H1 2025): €344 million (≈ R6.83 billion).
- Profit After Tax (H1 2025): €6.49 million (≈ R128.68 million).
- Net Assets (as of June 2025): €91.14 million (≈ R1.81 billion).
NKD’s business model emphasizes smaller-format stores averaging 300 sqm, located primarily in smaller towns, which translates into lower rental costs and a lean operational structure. The retailer’s focus on private-label products, minimal fashion risk, and efficient supply chain management has enabled sustainable profitability and gross margin expansion.
Mr Price highlighted several compelling reasons for the acquisition:
- Aligned Business Model: Both companies share a strong value retailing ethos, targeting price-conscious customers with quality offerings.
- Growth Potential: NKD has identified significant expansion opportunities within its seven existing markets and beyond.
- Market Dynamics: Value retailing accounts for 22% of Europe’s total retail market, outpacing overall retail growth globally.
- Cultural Fit: NKD’s seasoned management team and performance-driven culture align closely with Mr Price’s values.
According to Mark Blair, CEO of Mr Price Group:
After extensive research and engagement with NKD’s leadership, it was clear this was the right opportunity. NKD is ambitious, customer-focused, and shares our passion for value retailing. This acquisition positions us for long-term sustainable growth in a highly attractive market.
Post-acquisition, Mr Price’s footprint will expand significantly:
- Revenue: Projected to increase to R53 billion.
- Store Count: Over 5,000 locations globally.
- Employee Base: More than 40,000 staff members.
This move marks a pivotal step in Mr Price’s international growth strategy, complementing its aggressive expansion in South Africa since 2021.
The transaction is subject to customary regulatory approvals and is expected to close in Q2 2026. Mr Price will continue to work closely with NKD’s management team to ensure a smooth integration and unlock synergies across operations, supply chain, and technology.
