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imageJOHANNESBURG: South African clothing retailer Foschini said on Friday it had bought the holding company of British retailer Phase Eight for 238 million pounds ($361 million) in a deal that gives it access to European markets.

"The Foschini Group announces it has entered into an agreement to acquire 85 percent of Poppy Holdco Limited, which trades as Phase Eight," the company said in a statement.

Foschini bought the majority stake from American private equity firm TowerBrook Capital Partners who will exit the business completely.

The 36-year old Phase Eight sells clothing, footwear and accessories for women and has reported 18.9 percent average sales growth over the past five years, according to Foschini.

Foschini is the biggest seller of Adidas AG and Nike Inc products in South Africa and makes most of its sales through credit purchases

Copyright Reuters, 2015

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