EQT, Bain Capital or TPG Capital may be in the final stages to buy RM Williams, with talk in the market that a major global private equity fund is through to the second round of the competition.
All three buyout funds have previously embarked on deals in a similar space, and analysts believe they would be the most likely to compete for the business of the major names in the private equity world, with all familiar with the Australian market.
Goldman Sachs is running the process to sell the iconic Australian retailer known for its iconic boots and outback apparel.
This column has previously named China’s CDH as a contender for the company, which is on offer with an eye-watering price tag of $500m.
Also said to be circling is China’s Citic, and a local Chinese manufacturer that has invested in Australia in the past, while Asian private equity investor Navis Capital has been in the mix, as previously revealed by DataRoom.
Some have suspected that Lunar Capital could be a contender, given its interest in Australian assets in the past.
Chinese groups want to buy well-known Australian clothing brands, analysts say.
RM Williams is owned by L. Catterton and generates $23m in earnings before interest, tax, depreciation and amortisation.
There have been suggestions in its sales promotional material that it will triple its earnings to $83m by 2024.
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.
L. Catterton is backed by the French multinational luxury goods conglomerate LVMH Moet Hennesy Louis Vuitton which last month reached a deal to buy the iconic jewellery company Tiffany & Co for $US16.2bn.
It consists of Catterton’s existing North American and Latin American private equity operations and LVMH and Groupe Arnault’s pre-existing European and Asian private equity and real estate operations.
Other minority owners include IFM Investors and Australian actor Hugh Jackman.
RM Williams was founded in 1932 by Australian businessman and entrepreneur Reginald Murray Williams, who rose from swagman to millionaire after he started making bush wear.
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.
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