Private equity investors show interest in outdoor retailer as Briscoe stays mum.
Outdoor retailer Macpac has been put on the block and Briscoe Group boss Rod Duke, whose takeover bid for rival adventure-wear seller Kathmandu failed in September, won't be drawn on whether his firm has any interest in acquiring the business.
Privately-owned Macpac commenced a sale process after 58 per cent owner Jan Cameron, who co-founded Kathmandu in 1987, indicated she was looking to offload her shares in the Christchurch-based firm.
A spokeswoman said the company had performed "exceptionally well" over the past two years and there had been strong interest in the business from private equity investors on both sides of the Tasman.
Macpac operates 43 stores in Australia and New Zealand and employs more than 400 staff. Its products - which include tents, jackets, backpacks and sleeping bags - are sold in more than 30 countries.
The Australian Financial Review reported that Macpac was expected to fetch a sale price in the range of A$70 million to A$75 million ($74 million to $80 million), or roughly seven times its annual earnings before interest, tax, depreciation and amortisation (ebitda) of around A$10 million.
The spokeswoman declined to comment on those figures, or when the sale could take place.
KPMG is advising Macpac through the process.
NZX-listed Briscoe, the operator of Rebel Sport and Briscoes stores, remains on the lookout for acquisition opportunities after its takeover bid for Kathmandu was rebuffed by shareholders.
Contacted yesterday, Duke said he would prefer not to confirm or deny whether the company had any interest in buying Macpac.
"It would be premature or negligent of me if I said anything more than that at this point in time," he said.
Duke also refused to confirm or deny market speculation earlier this year that Briscoe was mulling a takeover bid for struggling children's clothing retailer Pumpkin Patch, which never eventuated.
Briscoe's cash reserves had reduced to $16.7 million by July 26 from almost $90 million at the end of January. The drop mostly reflects the $68.7 million Briscoe spent on snapping up a 19.9 stake in Kathmandu before it launched the takeover offer.
Duke, who owns around 80 per cent of the company, said in September that depleted cash reserves wouldn't stop the firm making another takeover attempt should the opportunity arise.
"We don't stop assessing and looking and that won't cease."
The AFR also reported that The Warehouse Group was a potential bidder for Macpac.
However, a Warehouse representative said that speculation was "well off the mark".
The Macpac spokeswoman said the company had not considered carrying out an initial public offering.
Macpac's roots stretch back to 1973 when founder Bruce McIntyre began making backpacks in his parents' Christchurch garage. The company shifted production to Asia in 2003, at the cost of 150 Canterbury-based jobs.
