Home / Knowledge / News / Apparel/Garments / Pacific Brands divests Brand Collective business
Pacific Brands divests Brand Collective business
20
Nov '14
Aussie apparel and footwear marketer, Pacific Brands said it has entered into three unconditional agreements to sell its Brand Collective business in the footwear, apparel and sport categories.

“Gross proceeds from the transactions of approximately $39 million, on a cash and debt free basis, will be applied to further reduce net debt,” Pacific Brands said.

Pacific Brands expects to complete all the transactions on or around December 1, 2014.

The footwear and apparel segment will be sold to Australian private equity firm, Anchorage Capital Partners.

Owned brands, including Grosby, Julius Marlow and Volley, as well as licensed brands Clarks, Hush Puppies, Mossimo and Superdry, and the Iconix Joint Venture will transfer with the business.

Sport brands, Dunlop and Slazenger will be sold to IBML, a division of UK-based Sports Direct International Plc, which owns these brands outside Australia and New Zealand.

The Everlast equipment licence from IBML, will be terminated in connection with the sale.

Sport assets related to the Sport business, including Everlast equipment, will be sold to Designworks, a division of Australian listed company - The PAS Group.

The carrying value of related net assets to be disposed is expected to be approximately $66 million at completion.

Subject to cost of disposal and completion adjustments, Pacific Brands expects to recognise a loss on sale of approximately $30 million in the financial year ending June 30, 2015.

In the financial year ended June 30, 2014, the Brand Collective business reported total sales of $204.5 million and reported EBIT loss of $22.3 million or $0.9 million before significant items.

“An element of corporate and shared services costs allocated to the Brand Collective business will be unrecovered following full transition of the business, estimated to be approximately $2 million per annum net of savings from associated restructuring initiatives,” Pacific Brands added.

CEO David Bortolussi said, “The sale of the Brand Collective business is consistent with our strategy to simplify and focus Pacific Brands on maximising the potential of our market leading brands such as Bonds and Sheridan.”

He added, “From a pricing perspective, the divestment represents good value to our shareholders for an unprofitable division and this transaction also represents the conclusion of the strategic review.

“The divestments of Workwear and Brand Collective will dramatically simplify Pacific Brands and significantly improve the overall quality and growth prospects of the brand portfolio.

“We will continue to consider other options to build shareholder value including further investment in our brands, wholesale partnerships, retail stores, online, category expansion and international distribution.” (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search