KKR in takeover bid for Australia’s PacBrands

Melbourne-based PacBrands, which is listed on the Australian Stock Exchange, said it is considering KKR's offer and is in early-stage talks with its prospective acquirer. "There is no certainty that these discussions will lead to any agreement being reached between the parties," it said.

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$0.64, 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.

To acquire PacBrands, KKR will need to do better than it did in its failed bid for another Australian company, Perpetual, in 2010. KKR offered between A$38-40 a share for the company, which came at a 29% premium to its last trading price, but the offer was deemed too low.

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• Topics
• Australasia
• Consumer
• PIPEs
• PIPE
• buyout
• KKR
• Australia
• Consumer