China’s CDH has emerged as a suitor for the iconic Australian boot and clothing outfitter RM Williams, which is up for sale for $500m.
Also said to be circling is China’s Citic, and a local Chinese manufacturer that has invested in Australia in the past is showing interest.
Some say private equity firm Navis Capital is also in the mix.
It will be interesting to see if Lunar Capital enters the race, given its interest in Australian assets in the past.
Chinese groups are interested in the business as they remain hopeful of owning well-known Australian clothing brands, say market analysts.
RM Williams is owned by L. Catterton and generates $23m of earnings before interest, tax, depreciation and amortisation. There have been suggestions in its sales promotional material that it will triple its earnings by 2024 to $83m. Working on the sale is Goldman Sachs.
L. Catterton amassed a 49.9 per cent stake in RM Williams during 2013, buying the interest from former News Corp boss Ken Cowley, before buying an additional interest, taking its ownership to 82 per cent.
Other minority owners include IFM Investors and Australian actor Hugh Jackman.
The company was founded in 1932 by Australian businessman and entrepreneur Reginald Murray Williams, who rose from a swagman to a millionaire after he started making Australian bush wear, becoming most famous for his riding boots.
He sold the business in 1988 to South Australian stock and station agents Bennett & Fisher before it wound up in the hands of Mr Cowley.
According to IBISWorld, RM Williams is the major industry player in the Australian footwear manufacturing industry, holding 14.5 per cent of the market. It says the brand has strong customer recognition, with an established reputation for quality. The company’s premium-priced footwear has traditionally been targeted at rural Australians but has recently become popular in urban markets for work and casual wear.
Most products are designed in Australia. Its elastic-sided boots are manufactured in the company’s factory in Salisbury in South Australia.
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