Australian owned men's apparel brands Tarocash, Connor and yd. have fallen into foreign hands.
South African retail group The Foschini Group (TFG) has taken over the brands' parent company, the Retail Apparel Group (RAG), for $302.5 million.
RAG, which has more than 400 stores across the Tarocash, Connor, yd., Johnny Bigg and Rockwear brands, was planning to float on the Australian share market this year.
The company's major shareholder, Navis Capital, has now agreed sell its controlling interest in RAG, while founding director Stephen Leibowitz will also sell his stake to TFG.
TFG chief executive Doug Murray said RAG, which is expected to post double-digit increases in revenue and profit this year, said the move marks a long-planned expansion into Australia.
"We are excited to be able to realise our ambition to expand into Australasia through the very successful RAG business and its well established and experienced management team," he said in a joint company statement.
TGF has more than 3,000 outlets around the world and owns 22 retail brands ranging from men's and women's clothing to homewares and jewellery.
RAG chief executive Gary Novis said the current management team is committed to play an ongoing role to assist TFG in expanding in the Australian market.
RAG had already begun a roadshow to potential investors and was understood to be pursuing the listing plans as late as March.
"Our board weighed up an initial public offering earlier this year, however TFG provides the perfect fit for RAG," Mr Novis said in the statement.
The takeover news came on a grim day for Australian merchants, with falls on the ASX for major retailers following an analyst report downgrading earnings expectations, and fast-fashion star Topshop's Australian stores going into voluntary administration.
TFG's takeover of RAG is expected to be completed before October.
