South Africa’s Mr Price Acquires Germany’s NKD Group, Marks European Market Entry

Mr Price is heading for Europe. The South African retailer, specialized in fashion and homewear, has agreed to buy NKD Group, a German chain of stores specialized in the same products and known for its discounts. According to Reuters, the amount of the transaction is €487 million.

The purchase of the German chain opens the door to Mr Price’s entry into the European market, based on the 2,108 stores that NKD Group has in seven countries in Central and Eastern Europe. Mr Price will finance the transaction with a combination of cash and debt reserves.

The aim of the acquisition is to increase Mr Price’s annual revenue from the current R40.9 billion ($2.4 billion) to R53 billion ($3.11 billion). In addition, the goal is also to increase the number of stores to more than 5,000.

Mr Price aims to increase NKD Group’s revenue to more than $2.4 billion

The transaction is subject to regulatory approvals, including from the European Commission and the South African Reserve Bank. The transaction is expected to close in the second quarter of 2026.

Mr Price took a 70% stake in Blue Falcon-owned sports fashion company Studio 88, which includes the SideStep, John Craig and Skipper Bar brands, in 2022. The deal was valued at R3.3 billion (then equivalent to $194 million). In 2022, it bought YuppieChef, a company specializing in the sale of kitchenware. And earlier, in 2020, it acquired the retailer Power Fashion in a deal valued at 1.6 billion rand ($90 million).

In recent years, however, Mr Price had stayed out of foreign markets, even pulling out of Nigeria, Australia and Poland. The deal will add between 5 billion rand ($293 million) and 6 billion rand ($352 million) in debt.