Rip Curl International Pty., the Australian surf-wear label. has hired an investment bank to explore unsolicited takeover offers. Bank of America Merrill Lynch was brought in to weigh offers from international bidders.
Rip Curl has been approached by private-equity groups and other companies interested in the brand's growth potential in emerging markets, such as Asia and South America, as well as its substantial brand recognition in the U.S., a person familiar with the matter told the Wall Street Journal.
An outright sale of Rip Curl could value the business at around A$500 million, the person said.
In a statement Monday, Rip Curl Group noted that unaudited pro-forma revenue and EBITDA for the 2012 financial year has increased over the prior year, in contrast to general surf industry performance.
“Rip Curl has identified a number of global opportunities which could complement its organic growth. We have also recently received unsolicited approaches from several international organizations which have indicated a desire to invest in our company,” it said. “In order to assess these opportunities, the Board has appointed Merrill Lynch to assist Rip Curl in exploring the opportunities available as well as assessing the merits of introducing a third-party investor to the Group. The Board recognizes that if any such investment were to occur it would need to be consistent with our objectives of ensuring our company values and brand values are respected, supporting our staff and being in the interests of our shareholders.”
