TPG Capital has entered exclusive talks to buy RMWilliams for about $200m, say sources.
It comes after the owners of the iconic Australian boots and outback apparel retailer had aspirations to sell RMWilliams for about $500m last year, as it launched a sale campaign through Goldman Sachs.
DataRoom revealed in December that TPG and Bain Capital were thought to be in the final stages to buy the business.
RM Williams is owned by L. Catterton and generates $23m in earnings before interest, tax, depreciation and amortisation.
There were suggestions in its sales promotional material that it would 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.
The business is backed by the French multinational luxury goods conglomerate LVMH Moet Hennesy Louis Vuitton which recently abandoned plans for 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.
The transaction was spearheaded by Australian TPG Capital head Joel Thickins.
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