Gresham in talks to sell Witchery to Country Road

Gresham Private Equity acquired Witchery, including the Mimco Accessories brand, in August 2006 for around $160 million. The private equity player has been reportedly looking for a buyer for at least one year, after the abandonment of a planned initial public offering, which was expected to launch at around $300-$350 million.

Last Friday, Country Road confirmed the negotiation through a statement filed to the Australian Stock Exchange following media speculation, but stressed that no agreement had yet been reached.

"Country Road is aware of media speculation concerning a possible transaction with Gresham Private Equity in relation to the Witchery Group," the company said. "Discussions with Gresham Private Equity relate to proposals that are incomplete, confidential and non-binding and there is no certainty that a transaction will take place."

Country Road, mainly owned by Cape Town-based retailer Woolworths, owns over 80 retail stores and 100 concession outlets in Australia and New Zealand. A merger between Country Road and Witchery, which have complementary markets, is likely to improve efficiencies in terms of supply chains and other resources.

Established in 1999, Gresham Private Equity specializes in leveraged buyouts in both Australia and New Zealand, typically for enterprises valued between $100 and $500 million. The group is the manager of three funds with 15 investments across a diverse range of sectors, and capital commitments of $600 million.

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• Topics
• Australasia
• Consumer
• Buyouts
• Consumer
• buyout
• Gresham Private Equity
• Australia