Old Mutual Private Equity (OMPE), a division within Old Mutual’s Alternative Investments business, has acquired a 70% stake in MoreCorp, the South African Golf and Cycling retailer best known for brands that include The Pro Shop, World of Gold, Playmoregolf and Cycle Lab, for R300 million or approximately $21 million. The transaction, which is being made through the private equity arm’s R4 billion Fund IV, is seen as being a bet on the resilience of the country’s upper-middle class in the face of South Africa’s current economic downturn.
“The opportunity to buy MoreCorp arose when Darryl’s business partner, Rhys Hughes, who founded The Pro Shop 39 years ago, decided to sell his share in the company allowing us to also buy out the group’s other significant shareholders,” says OMPE Investment Principal Chumani Kula. “We saw MoreCorp as an entrepreneurial, cash generative business with a great management team, a strong market position in its niche and attractive growth prospects.”
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