Private equity buyers are likely to be in the mix in the latest sale process for Rip Curl, particularly those who missed out on Billabong three years ago, including Altamont Capital Partners, which teamed up to bid with clothing giant VF Corporation, and Sycamore Partners, which backed former Billabong boss Paul Naude’s unsuccessful offer.
Just in: Rip Curl Readies to Sell!
Three hundred mill? More?
Five years ago, almost to the day, Rip Curl’s three major shareholders figured they’d sell, but only if they could get close to half a billion dollars.
It was an ambitious, and not entirely unrealistic, amount arrived at by the founders Doug Warbrick and Brian Singer (who jointly own seventy two percent) and founder of Rip Curl in Europe, Francois Payot (eighteen percent).
It didn’t come off. A sale price of ten times earnings multiple ain’t an easy play to make. But worth a try. There’s a lot of dumb money out there.
Two years ago, Rip Curl was valued at $310 million after the board approved a share buyback from former senior executives no longer with the company.
News in today, suggests Doug, Brian and Francois are spit-polishing the biz for another swing at selling the house. Doug and Brian have appointed the Australian company Gresham and the US investment firm RW Baird and Co to manage the sale process.
According to the Australian Financial Review,
“It’s the end of an era. Look at Torquay. Two billion dollars worth of wealth and none of it put back. None of the owners’ kids work for the companies.” Maurice Cole