Bendon Group, which has the global distribution rights for Elle Macpherson Intimates and Stella McCartney underwear, put up A$2 million ($2.5 million) to kick off a 2011 merger with Australian rival Pleasure State in a deal that shrank millionaire Eric Watson's stake in the company.
Bendon's Australian unit made the deposit on Pleasure State in the 12 months ended June 30, 2011, before acquiring its rival on August 12, shows the financial report lodged with the Australian Companies Register. The full price paid hasn't been disclosed.
Watson's Cullen group ceased to be Bendon's sole shareholder in the merger and was replaced by Australian-domiciled JADR Holdings, according to the Companies Office. At the time, the deal was heralded as leaving Watson with an unclear, but "significant beneficial interest" in Bendon.
Cullen bought the underwear-maker in 2002 for $1.90 a share, valuing Bendon at $58.7 million. Watson also stepped back from having a role in its strategic direction as he and lieutenants Mark Flay and Don Stanaway stepped down from the merged underwear-maker's board.
They were replaced by the Pleasure State founder and boss of the merged entity, Justin Davis-Rice, and former Myer chairman Bill Wavish, who this year joined the board of Watson's Warriors rugby league team.