TheDeal.com reported last week that Swander Pace Capital has retained Wachovia Securities to help it sell Reef Holdings. The report indicated that Reef is generating more than $10 million in EBITDA on roughly $80 million in revenues, but other sources familiar with the company told SEW that 2004 revenues were closer to $100 million.
A valuation set at 7.5x to 8.0x EBITDA, which is the range seen by most deals in the last year, would put the deal at roughly $75 million to $80 million.
The company would certainly be attractive to both private equity firms and strategic investors. TheDeal.com pointed to the obvious potential interest from Warnaco, VF Corp., and Quiksliver on the strategic side and named no fewer than 10 players on the P.E. side.
