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‘Carlyle interested in trying on Dr Martens’
Posted on Friday, 22 November 2019 08:31
Buyout group Carlyle is said to be weighing an offer for UK-based footwear manufacturer Dr Martens from current private equity owner Permira.
Both Bloomberg and Sky News have cited people close to the situation as saying the company is in the early stages of considering a proposal and therefore there can be no guarantee of an agreement being reached.
Sources told the news provider that other interested parties could also emerge.
News of a possible sale of iconic boot maker Dr Martens was first reported in June when Sky News said Permira was exploring options, including a disposal or initial public offering, that could value the brand at GBP 300.00 million.
A few days later, Bloomberg’s insiders observed that Goldman Sachs and Robert W Baird have been hired to work on the strategic review, with the buyout group hoping to exit the business in 2020.
Dr Martens was picked up by Permira for EUR 380.00 million in 2014.
Founded in 1947, the footwear giant has operations in over 63 countries, with more than 100 stores worldwide.
The group’s products, in particular its signature black leather boot, has been a popular choice among various groups in British culture after first being worn by ‘skinheads’ in the 1960s and the Who’s Pete Townshend in the same decade.
Permira reported Dr Martens’ financials for the year ended 31st March 2018, showing a 33.0 per cent increase in earnings before interest, taxes, depreciation and amortisation to GBP 50.00 million, on a 20.0 per cent rise by revenue to GBP 348.60 million.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 99 deals targeting footwear manufacturers announced worldwide since the start of 2019.
In the largest of these, Kering issued convertible bonds in German sports products group PUMA worth EUR 500.00 million. The notes will convert into shares and will be issued to qualified investors via an accelerated book building process.
Alpargatas, E-Land Footwear, ANTA Sports Products and Topscore Fashion, among others, have also been targeted in 2019 to date.
© Zephus Ltd