King & Wood Mallesons has advised the management team of UK-based international women’s clothing and accessories chain, Phase Eight, on the acquisition of the company by The Foschini Group (TFG), a leading independent chain-store group in South Africa. The transaction values Phase Eight at £238 million.

Under the ownership of investment management firm TowerBrook since 2011, Phase Eight has secured its position in the market as a popular upmarket fashion brand, with sales rising 15% to £141m in the year to 1 February 2014. The chain has 310 stores and concessions throughout the United Kingdom and Ireland – including its flagship store in James Street, London - as well as 128 stores and concessions in 16 other international markets.

The acquisition supports both Phase Eight and TFG’s international expansion strategy with plans to roll the store out in the South African market. TFG will also capitalise on Phase Eight’s strong management team and a business model that has maintained a strong track record of growth.

Under the terms of the acquisition TowerBrook has exited the business and management have become 15% shareholders alongside TFG in a new holding company.

Ben Barnett, CEO of Phase Eight, said: “Over the last 5 years, Phase Eight has grown rapidly in international stature, both as a business and a brand. During this period KWM have guided the management team through a number of key events, including our 2011 MBO, as well as providing both UK and international advice in support of our day to day legal requirements. We are delighted to have been able to work with KWM to cement our new partnership with TFG and look forward to continuing our successful relationship in the future”.

Richard Lever, co-head of the Corporate practice at King & Wood Mallesons, said: “Phase Eight has proved itself to be a profitable business and a brand that has global appeal. Under the leadership of The Foschini Group and the management team we expect to see its expansion continue, validating an already strong growth strategy.”

The full King & Wood Mallesons team was comprised of Corporate partner Richard Lever with associates Janine Suttie and Gillian Grainge alongside Finance partner Simon Fulbrook, with managing associate Agnes Abosi and associate Oleksandr Pankiv.