TPG eyes PacBrands takeover

The private equity giant has not yet finalised the price and size of the loan which would support the deal, nor has it told the company of its interest, according to The Australian Financial Review.

These early-stage talks come just weeks after KKR launched an unsolicited takeover bid for PacBrands. TPG is said to be waiting to see how negotiations advance between its rival investor and the company before pushing ahead with an offer.

Melbourne-based PacBrands, which is listed on the Australian Stock Exchange, commented last month that there was no certainty that its discussions with KKR would lead to any agreement between the parties.

Nevertheless, news of the bid caused the company's shares to rise by as much as 20%, up to a 10-week high of A$0.67. The stock is currently trading at A$0.66, although the recent jump would have given the firm a valuation of $610 million.

PacBrands, which distributes products made by Everlast, Bonds, Clarks and Dunlop, is no stranger to private equity. Almost 11 years ago, a consortium including Catalyst Investment Managers and CVC Asia Pacific bought the business from parent company Pacific Dunlop for $730m. They exited in 2004 via an IPO which valued the firm at $1.3 billion.

The company's shares have since fallen by more than half.

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• Topics
• Australasia
• PIPEs
• Consumer
• PIPE
• Consumer
• TPG Capital
• KKR
• Australia