L Capital-backed 2XU targets IPO in Australia or US

Ravi Thakran, Asia managing partner with L Capital, has said the company is likely to settle on a jurisdiction in the later part of the year, according to the Australian Financial Review.

Eight banks are said to have pitched the clothing brand on a listing at the end of the year or early next year, with possible valuations ranging from A$600 million to A$800 million - based on 20x EBITDA multiple. The company is said to have grown its EBITDA by around 25% per annum over the past five years.

Set up in Melbourne in 2005, 2XU makes high performance sports clothing catered to the technical sportswear market for runners, swimmers, cyclists and triathletes. The company has offices in the UK, US, and Australia, and has a global distribution network covering more than 60 countries. Its online stores are in Australia, New Zealand, Japan, Korea, Singapore, North America and Brazil.

Lazard Private Equity acquired a significant minority stake in 2XU in 2011 via Lazard Corporate Opportunity Fund 2. It then made a partial exit in December 2013 when L Capital paid A$75 million for a 40% stake.

Shortly after the investment, Christina Teo, managing director with L Capital, told AVCJ that the company was in talks with distributors to expand its reach into China. "While the company has a large in presence in Australia as well as in the US, it is still the tip of the iceberg," she said.

L Capital's other Australian investments include: swimwear brand Seafolly, which it acquired last December; bootmaker R.M. Williams; and food retailer Jones the Grocer.

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• Topics
• Australasia
• Consumer
• Exits
• L Capital Asia
• Australia
• Consumer
• IPO
• Exit