Since it's an Ozbargain staple shoe, thought I'd share. Pretty safe to say this brand is being sold around like a … you know what. Curious to see the further impact this sale will have on the quality, already noticed a drop in the quality since its sale to the Singaporean group…
I know from friends in London these things sell like crazy, along with Stone & Wood, it's a London bankers dynamic duo!
Source AFR
Investment bank Goldman Sachs has kicked off bush outfitter RM Williams' sale with a four-pronged growth pitch to potential trade and private equity buyers.
According to a flyer sent to interested parties and obtained by Street Talk, RM Williams' earnings are forecast to more than triple by the 2024 financial as it targets younger customers in Australia, grows its UK business, accelerates its roll-out in the United States and expands in other parts of the world.
The flyer said RM Williams recorded $23 million in earnings before interest, tax, depreciation and amortisation in the 2019 financial year, and was expected to increase to $34 million in 2021 and $83 million in 2024.
Revenue from its Australian business was slated to rise by $98 million across the forecast period, across both online and in-store sales. Interested parties were told there were 12 new retail stores in the works and strong growth expected in existing wholesale channels.
In the UK, revenue was expected to be up $28 million on the back of two new stores and 90 new wholesale doors, while US revenue growth over the forecast period was worth $70 million. There were 17 new stores and 200 new wholesale doors expected in the United States.
The flyer said RM Williams was targeting its online sales to reach 10 per cent of total sales and had $120 million in net assets.
Owner L Catterton tapped Goldman Sachs to find a buyer for RM Williams in May, as revealed by Street Talk, and has been working on its pitch in the months since.
L Catterton paid former News Corp executive Ken Cowley about $110 million for the business in 2014, having already owned a minority stake.
It wasn't all forecasts in the flyer. Interested parties were told RM Williams had recorded 12 consecutive quarters of like-for-like sales growth in its Australia and New Zealand stores, while revenue was up 10 per cent a year on a compound annual growth rate basis in the four fiscal years to 2019.
It was also said to be operating at a 62 per cent gross margin.
Ninety one per cent of the company's revenue was recorded in Australia and New Zealand.
The business is expected to attract interest from large offshore consumer brands companies including VF Corp, and private equity firms including Fosun and Lunar Capital, as well as the usual players in Australian buyouts.
No, I don't know, but now I want to know! Like a what?
I tried Googling the phrase, but I didn't turn up anything sensible.