L Capital acquire 40% of 2XU, Lazard sees 2x multiple

Founded in Melbourne in 2005, 2XU is a maker of high performance sports clothing catering to the technical sportswear market for runners, swimmers, cyclists and triathletes. The firm has a global distribution network covering more than 50 countries and claims revenue growth in excess of 40% per annum over the past five years.

According to a release, L Capital's investment will provide 2XU with consumer market knowledge and access to global markets through its extensive network and the LVMH Group. The investment was made through L Capital Asia 2, which reached a first close in September at the hard cap of $950 million after less than six months in the market.

This marks L Capital's second investment in Australia this year, the firm having acquired a 49.9% stake in boot maker R.M. Williams for around A$52 million in April.

The transaction - which had been a pro-rata sell down by all shareholders - represented a partial exit for Lazard, which acquired a significant minority stake in the business for an undisclosed sum in 2011 via Lazard's Corporate Opportunity Fund 2.

"Lazard Private Equity has enjoyed a successful partnership with 2XU since 2011 during which time the business has doubled its turnover, profit and been highly cash generative," said Gareth Young, director of Lazard Private Equity. "This transaction delivers to our Fund 2 investors a money multiple return and IRR in excess of 2x and 50% respectively."

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• Topics
• Consumer
• Australasia
• Lazard Australia Private Equity
• Consumer
• Australia
• L Capital Asia