On 25 February 2021, VPEG3 investee Allegro Fund III completed the 100% sale of Ngahuia Group Ltd to Tahua Partners.
In October 2017, Allegro partnered with Roger and John via an MBO to acquire Ngahuia from ASX listed Bapcor (ASX:BAP), who sold the business as a non-core asset. Allegro applied its unique approach and large operating partner team with skills across branding, operations and strategy to partner with management to accelerate the transformation of Ngahuia.
Ngahuia is New Zealand’s leading footwear retailer operating 100 stores across two iconic retail brands—Number One Shoes and Hannahs. Hannahs is one of New Zealand’s oldest brands and has operated for over 150 years while Number One Shoes has operated for over 40 years. Both brands are focused on the value to mid market segment.
The business pursued an aggressive customer and digital led strategy while shrinking its physical footprint and lowering its operating cost base. Online sales have grown significantly to 10% of sales and continues to grow rapidly. The business also invested in its data capability to drive CRM and digital marketing across its 1m+ customer database.
Once completed the proceeds of this sale will deliver another strong return and distribution to VPEG3 investors during the June 2021 Quarter.