Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

ASX-listed Super Retail Group pays $144M for Macpac

ASX-listed Super Retail Group pays $144M for Macpac, more than twice the 2015 price

By Paul McBeth

Feb. 20 (BusinessDesk) - ASX-listed Super Retail Group has bought outlook equipment chain Macpac Holdings for $144 million, more than twice the $68.7 million paid by Australia's Champ Private Equity in 2015.

The deal adds 54 stores across Australia and New Zealand to Queensland-based Super Retail's suite, and is expected to generate sales of $95 million and pro-forma earnings before interest, tax, depreciation and amortisation of $16 million in the year ending March 31. Super Retail will consolidate its Rays outdoor equipment brand under the Macpac badge, which will focus on small format stores reliant on apparel, large format stores offering an extensive range of apparel, footwear, equipment and accessories, digital channels offer the complete range and access to services, and a commercial channel.

"The Macpac business has performed extremely well over recent years, yet there remains a significant opportunity to grow the business in the near future through opening new stores and growings its digital and commercial channels," managing director Peter Birtles said in a statement to the ASX. "The integration of the business with Rays provides an opportunity to position Macpac as the leading outdoor adventure specialist across Australia and New Zealand providing a much broader range of quality products, information and services than any other retail business."

Super Retail will fund the deal from existing debt, and has got its banking partners to increase that credit line by A$150 million to give the retail group headroom to pursue a broader omni-retailing strategy. The ASX-listed shares dropped 15 percent to A$7.

The acquisition is expected to be completed on March 31, and generate mid-single digit earnings per share gains for the ASX-listed firm.

Super Retail, which operates the BCF, Rays, Rebel and Super Cheap Auto retail brands, will take over the outdoor equipment chain after about two years in private equity ownership. Champ bought a majority stake using its Champ Ventures 7 Funds vehicle to acquire the retailer, which targets equity investments of between $20 million and $80 million.

At the time of the sale to Champ, Macpac cornerstone shareholder and Kathmandu Holdings founder Jan Cameron kept a small stake with her former husband and Kathmandu co-founder Bernie Wicht, and Macpac chief executive Alex Brandon. Cameron owned about 58 percent of Macpac, having bought into the company for a reported A$20 million in 2011 after her non-compete clause with Kathmandu ended.

Financial statements for holding company MP Finco show Champ paid $68.7 million for Macpac, of which $62 million was in cash and $6.8 million in scrip. In the five-month period covered to March 31, 2016, the company generated an operating loss of $362,000 on revenue of $10.6 million at a gross margin of 55 percent. The retail carried bank debt of $25 million, with a 2019 maturity.

Super Retail reported a 3 percent decline in first half profit to A$72.2 million on a 2.2 percent gain in revenue to A$1.32 billion. The board declared an interim dividend of 21.5 Australian cents per share, payable on April 3.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: