Pencarrow exits New Zealand's Icebreaker to US trade buyer

VF will acquire 100% of the company for an undisclosed sum. Pencarrow invested alongside government-controlled Accident Compensation Corporation (ACC) in November 2015, taking a 38% stake via its fourth fund, which closed at NZ$124 million ($85.7 million) in 2013. The transaction is expected to be finalized early next year.

Value-add efforts during the Pencarrow holding period included direct-to-consumer market optimizations and a number of margin improvement initiatives. According to a release, the company will maintain its existing management team under the new ownership.

Icebreaker was founded in 1994 with a view to providing quality, high-performance wool clothing while maintaining high ethical and sustainability standards. The company has bases in New Zealand, Australia, North America and Europe, and stocks more than 5,000 stores across 47 countries. It has reported annual revenue as high as $150 million.

VF also focuses on lifestyle sportswear, with portfolio of brands including The North Face, Timberland, SmartWool and Vans. “Our partnership with VF provides us with the largest platform in the world to tell our story, access new markets and reach new consumers at an accelerated pace,” Jeremy Moon, Icebreaker’s founder, said in a statement.

Pencarrow claims to have committed more than NZ$500 million across 30 mid-cap New Zealand companies since 1993. It has raised five funds, including four fully deployed flagship vehicles and a bridge fund which closed at NZ$80 million in November last year.

Recent activity includes the exit of a 100% stake in tea and coffee company BrewGroup to European beverages maker Jacobs Douwe Egberts for about NZ$100 million. The GP had acquired the business in 2013 alongside ACC for $25.6 million.

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• Topics
• Australasia
• Exits
• Trade sale
• Consumer
• New Zealand
• Pencarrow Private Equity
• manufacturing