Investment company Long4Life is set to purchase South African fashion retailer Rage Distribution Proprietary for R3.915bn ($282.78m).

The transaction allows Long4Life to expand its business with a focus on mid-to-lower living standard measure (LSM) segments. It will also support the company’s existing lifestyle brands platform and create additional cross-selling opportunities.

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“Following the deal, Rage founders Jeffrey and Merle Gochin will become significant shareholders of Long4Life and continue to manage Rage.”

Rage will also strengthen Long4Life’s retail product offerings to include all segments of the LSM market.

The purchase consideration for the transaction will be funded through the issue of 270 million Long4Life ordinary shares at a price of R5.50 per share, valuing at $107m. Rage will then hold a 22.8% stake in Long4Life, and the remaining amount will be paid in cash.

Scheduled to close on 1 July 2018, the transaction is subject to certain conditions such as due diligence investigations and approval by the competition authorities.

Following the deal, Rage founders Jeffrey and Merle Gochin will become significant shareholders of Long4Life and continue to manage Rage. Jeffrey will also be appointed to director of the Long4Life board of directors.

Established in 1996, Rage offers footwear, apparel and accessories for adults and children.

The South African fashion company currently operates 555 stores across the country. It is opening around 90 new stores per year across South Africa.