Blackstone reached an agreement to hand over Jack Wolfskin to senior debt holders in a debt for equity swap. Jack Wolfskin is now owned by a consortium of investors and hedge funds.
The largest new owners will be Bain Capital Credit, H.I.G. Bayside Capital and CQS, who collectively hold more than 50 percent in Jack Wolfskin. They will provide Jack Wolfskin with €25 million ($29 mm) in the form of a super senior loan, strengthening the company’s liquidity position. The swap will reduce its bet to €110 million ($125 mm) from €365 million, with maturity extended to 2022.
The debt for equity exchange arrives after the company also launched an M&A process in January to explore a sale but found no serious bids. In January Jack Wolfskin also agreed a circa six-month waiver with its lenders to support its efforts to secure a debt restructuring.
Melody Harris-Jensbach, CEO at Jack Wolfskin, said in a statement: “After strengthening our liquidity and significantly reducing our liabilities and interest expense, the financial restructuring of Jack Wolfskin has been successfully completed. The company now has a sound basis and the necessary capital to further expand its business. Added to this is an encouraging trading scenario. Following a positive business performance in line with our budgets, we are starting to see growth again in the German-speaking countries, which are traditionally our core market, as well in our focus markets.”
Harris-Jensbach added, “This trend is gathering additional momentum due to the high level of orders for our 2017 autumn and winter collection and positive feedback from our customers on our new product developments, including the new Texapore Ecosphere, which is made from 100% recycled material.”
Gauthier Reymondier of Bain Capital Credit, commented, “Jack Wolfskin is a very strong outdoor brand, number one in German-speaking countries and number three from the International Outdoor brands in China. We are committed to supporting Jack Wolfskin and now that the restructuring has been completed, we are well positioned to develop the company further in the coming years”.
Jack Wolfskin has reportedly been struggling with challenging overall conditions at retail as well as transitional issues in moving to direct control in China. It operated about 700 locations in China in 2015.
In 2011, Blackstone acquired Jack Wolfskin from Quadriga Capital and Barclays Private Equity reportedly for $994 million with a plan to expand the German outdoor clothing brand internationally.
Barclays Private Equity’s Munich office, along with Quadriga Capital, acquired Jack Wolfskin from Bain Capital LLC in May 2005. Bain had purchased the business from Johnson Outdoor in 2002.
Photo courtesy Jack Wolfskin
