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Coliseum Capital to take over PAS Group
Posted on Monday, 19 June 2017 11:18
Hedge fund Coliseum Capital is purchasing the remaining 51.4 per cent of Australian apparel retailer PAS Group in an all-cash deal worth AUD 35.86 million (USD 27.26 million).
The buyer, which already owns 48.6 per cent of the target, is carrying out the acquisition via its investment vehicle Brand Acquisition.
Coliseum is paying AUD 0.51 per share, representing a 4.1 premium to PAS Group’s close of AUD 0.49 on 13th June 2017, the last trading day prior to the bid being announced.
The target’s board has advised shareholders to take no action while it is reviewing the offer, which remains valid until 3rd August this year.
Listed on the Australian Securities Exchange, PAS Group is a retailer and wholesaler of maternity, leisure and sports clothing, as well as accessories like handbags and sunglasses.
It owns brands such as White Runway, Jets Australia and Fiorelli and partners with companies including Walt Disney and Karrimor.
Pas Group’s shareholders include Macquarie Asset Management, GreenCape Capital and private equity firm Propel Investments.
The clothing firm posted AUD 294.76 million in the 12 months ended 30th June 2016, up 16.4 per cent on the AUD 253.21 million recorded during the same timeframe in the previous year.
Net profit for the period totalled AUD 10.56 million, compared to net loss of AUD 31.93 million in 2015.
Last year, Coliseum Capital and five other creditors acquired American Apparel by converting USD 230.00 million-worth of debt into equity.
In addition, the purchasers injected cash of USD 10.00 million into the Los Angeles-based clothing manufacturer, which was delisted from the American Stock Exchange following the takeover.
Coliseum Capital also successfully invested in a USD 70.00 million private placing carried out by automotive and marine technical training provider Universal Technical Institute last June.
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