CHAMP Ventures-owned Macpac set for $107m trade sale

The private equity firm, which is currently winding down operations, paid around A$70 million (then $51 million) for Macpac in December 2015. Expansion plans included building out the company’s footprint in Australia, developing its online business, and growing international wholesale activities, which were then limited to equipment distribution agreements in Europe and Japan.

Founded in 1973 as a supplier of high-end climbing packs, Macpac was an equipment wholesaler until 2008, around the time Bernie Wicht invested in the business. Wicht and his ex-wife, Jan Cameron, previously founded Kathmandu, a PE-backed outdoor apparel retailer that went public in 2009. They bought a majority stake in 2011 on the conclusion of a non-compete agreement with Kathmandu.

When CHAMP invested, Macpac had 43 stores, 27 in New Zealand and 16 in Australia. It now has 54 outlets offering primarily own-branded apparel, equipment, and accessories. Sales and pro forma EBITDA are expected to reach NZ$95 million and NZ$16 million, respectively, for the year ending March 2018. Total sales increased 20.9% year-on-year for the nine months ended December 2017.

Super Retail plans to combine Macpac with Rays, its existing outdoor entertainment and camping leisure retailer. The business will operate under the Macpac brand, led by Macpac CEO Alex Brandon. Super Retail has restructured Rays over the past year, closing 38 stores and converting 15 others to a big-box format. The combined Macpac and Rays business will feature small and large format stores as well as an extensive digital channel.

Super Retail claims the Australian adventure outdoors retail market is worth around A$2.2 billion a year, serviced by apparel specialists, big box generalists, and independents. It believes no existing player is fully meeting customer expectations.

“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,” Peter Birtles, group managing director and CEO of Super Retail, said in a statement.

The company will leverage its supply chain, marketing and procurement capabilities, as well as its retail operations, to support Macpac. It expects the latter’s abilities in design and apparel sourcing to add value to boating, camping and fishing retailer BCF and sports brand Rebel. There were 135 BCF stores as of March 2017. BCF and Rays together generated sales of A$553.5 million and EBITDA of A$43.1 million.

This is not the first time Super Retail has bought from private equity. In 2011, the company acquired Rebel from Archer Capital for A$610 million.

CHAMP Ventures decided against pursuing another fundraise in 2016 and the remaining portfolio companies are in the process of being exited. In late 2016, H-E Parts - a joint investment with US-based Frontenac - was sold to Hitachi Construction Machinery for $240 million, for a 2x return.

Three executives from CHAMP Ventures – Gareth Banks, Jonathan Kelly and Paul Readdy – subsequently teamed up with Quadrant Private Equity co-founder George Penklis to establish Odyssey Private Equity. The new GP closed its debut fund last year at A$275 million.

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• Topics
• Australasia
• Trade sale
• Consumer
• Australia
• New Zealand
• CHAMP Ventures
• Exit