Tuesday 10th January 2012 1 Comment
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Pacific Brands, whose clothing labels include Jockey underwear, has confirmed it is in takeover talks with KKR after reports that the buyout firm has made an offer worth about A$600 million.
Pacific Brands “has received an unsolicited approach from KKR regarding a possible acquisition of the entire issued capital of the company,” the Melbourne-based company said in a statement.
The company’s board and advisers Flagstaff Partners and Minter Ellison are “considering the approach and preliminary discussions are being held with KKR,” it said.
KKR wrote to the board of Pacific Brands before Christmas and there was no certaintya deal, worth about A$600 million, would proceed, the Australian Financial Review reported.
Shares of Pacific Brands have fallen 43 percent in the past 12 months and were last at 56 Australian cents on the ASX, valuing the company at A$511 million. The stock is rated ‘outperform’ based on the consensus of 16 recommendations compiled by Reuters.
The company reported a net loss of A$131.9 million last year, reflecting impairments and restructuring costs in what it called an “increasingly tough retail market.” Profit before items rose about 15 percent to A$103 million.
The company’s clothing and bed-linen brands include Berlei, Bonds, Clarks, Dunlop, Everlast, Grosby, Hard Yakka, Holeproof, Hush Puppies, King Gee, Mooks, Mossimo, Razzamatazz, Sheridan, Slazenger, Tontine and Volley.
The newspaper said Pacific Brands, a clothing wholesaler, would be open to a return to private ownership because of the pressure of complying with being a publicly traded firm.
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