Kathmandu's buyout firm owners look to exit via $457M IPO

Monday 19th October 2009

Outdoor equipment chain Kathmandu Group plans to raise as much as $457 million in an initial public offering, allowing owners Goldman Sachs JBWere and Quadrant Private Equity to exit most of their holding.

The two investment firms acquired Kathmandu from founder Jan Cameron in 2006, reportedly paying $275 million. After the float, their holding will shrink to between zero and 15% of the company, which is to be dual-listed in Australia and New Zealand, they said in a statement.

Between 166.9 million and 197.4 million shares of the retailer will be offered via the IPO, the first in New Zealand in almost two years, at an indicative range of A$1.65-A$1.90, or $2.01-$2.32.

The private equity owners have expanded the chain since buying the business from Cameron and it now has 82 stores across New Zealand, Australia and the U.K., as at July 31. It is forecast to lift sales to $240 million in 2010, from $216 million in 2009. EBITDA in 2010 would rise 15% to $57 million.

Kathmandu “is well positioned to deliver attractive financial results for its shareholders,” chairman James Strong said.

The offer opens on Oct. 27 and close on Nov. 6, with the shares set to debut on the ASX and NZX on Nov. 18.Kathmandu plans to open 12 more stores in Australia and New Zealand this year, said chief executive Peter Halkett.

All up, the company has identified 70 suitable locations for new stores, he said. Net debt of the company will be $70 million, based on July 31 levels.

Businesswire.co.nz

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