Pacific Brands announced today it has signed an agreement to sell the Footwear and Outerwear businesses of its Brand Collective division to Anchorage Capital Partners. Anchorage is also acquiring the rights to the Brand Collective name, which will be the trading name of the business going forward. Martin Matthews, current Group General Manager of Brand Collective, will be Chief Executive Officer of the newly acquired business. Caleb Brown, current General Manager of Strategy and Commercial Finance, will be Chief Financial Officer.
Brand Collective owns a number of iconic Australian brands including Volley, Grosby and Julius Marlow, and has exclusive licences for leading international brands including Superdry, Clarks, Hush Puppies and Mossimo. The business sells through a combination of leading department stores and discount department store chains, as well as around 50 branded retail sites and several company owned websites. Brand Collective also owns the Shoe Warehouse chain of discount footwear stores.
In partnership with management, Anchorage has developed a comprehensive rejuvenation plan for Brand Collective. Anchorage Managing Director and Chairman of Brand Collective, Simon Woodhouse, said “Anchorage is extremely excited to announce the acquisition of Brand Collective. The business has an enviable brand portfolio and we believe that with the right focus and investment we can establish Brand Collective as the leading house of brands in the Australasian region. We look forward to working with Martin, Caleb and all of the employees of Brand Collective to achieve this vision.”
Joining Simon on the Board will be fellow Anchorage partner Daniel Wong, while Chris Adams, Director at Anchorage, will also assist management with the turnaround program.
Martin Matthews, CEO of Brand Collective said “I am extremely excited by the opportunity this change creates for the Brand Collective business, our brands and our people. Under Anchorage's ownership we will have the support, freedom and investment we need to accelerate the turnaround of our business and the rejuvenation of our brands. We look forward to partnering closely with our licensors, retail customers and suppliers to achieve our vision for the business.”
Anchorage's financing partner for the transaction is Westpac. Minter Ellison provided legal advice and Ernst & Young acted as tax advisor.
The transaction is expected to complete on 1 December 2014.
About Anchorage Capital Partners
Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential. The funds managed by Anchorage have $450 million in committed funds. Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams. Anchorage has significant experience in the consumer products and retail sector, gained through successful investments including Dick Smith Holdings, Burger King New Zealand and Golden Circle.