R.M. Williams looking for well-heeled investors

Hugh Jackman is the ambassador for R.M. Williams boots

Offers for the iconic Australian outback boot and clothing outfitter R.M. Williams are believed to have landed below the owner’s lofty $500m expectations and now some are wondering what is next for the owner L. Catteron.

One possibility being suggested is that the business could now fall into the hands of high net worth investors, as was the case some years back.

Former News Corp boss Ken Cowley previously owned the business and now the thinking is that a similar sort of investor could now buy R.M. Williams back. The apparel group has been up for sale through Goldman Sachs and while its iconic riding boots are currently made in Adelaide, the business is thought to be under pressure to take manufacturing offshore

R.M. Williams generates $23m of earnings before interest, tax, depreciation and amortisation and suggestions in its sales promotional material that it will triple its earnings by 2024 to $83m have been met with scepticism. Some say an opportunity could exist to sell more of the apparel in US markets such as California.

Private equity L. Catterton, backed by the LVMG group, amassed a 49.9 per cent stake in R.M. Williams during 2013 when it acquired the shares from Mr Cowley. It 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, R.M. Williams is the major industry player in the Australian footwear manufacturing industry, holding 14.5 per cent of the market.