Youth clothing retailer Universal Store has hired broker Morgans for its initial public offering as it prepares to head to the boards as a company with a market value of just under $300m.
The company, which is owned by private equity firm Catalyst and Brett Blundy, is pricing its float this week as part of its process to lock in cornerstone investors.
It is understood that the pricing is shaping up to equate to between 13 and 14 times the company’s net profit, with the size of the IPO to be about $150m.
Already working on the float is JPMorgan and UBS.
With 60 stores, Universal Store specialises in trend-led and casual men’s and women’s fashion, shoes, accessories, lifestyle and gifting. It sells a range of brands including Champion, Perfect Stranger, Tommy Jeans, Wrangler and Lee.
Universal Store was snapped up by Mr Blundy’s BB Retail Capital, Catalyst Direct Capital Management and Five V Capital, in June 2018.
The consortium outlaid $110m for the operation from founders Michael and Greg Josephson.
Universal Store generated $25m of annual earnings before interest, tax, depreciation and amortisation for the 2019 fiscal year on sales of $145m.
KKR’s persistence raises hopes for Perpetual
The fact that Kohlberg Kravis Roberts remains in talks with Perpetual to buy its corporate trust and wealth management unit has raised hopes the private equity firm will lift its offer.
Private equity giants in line for Device Tech
The Carlyle Group and CVC Capital are shaping up as the frontrunners to buy the $1bn-plus Device Technologies, shortly to be put up for sale by Navis Capital.