Rip Curl said today in Australia that it has hired Merrill Lynch to help the company assess offers from several private equity firms, according to a story in Australian Financial Review.
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The paper quoted this statement from the company:
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“We have also recently received unsolicited approaches from several international organizations which have indicated a desire to invest in our company. 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.”
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According to the story, Rip Curl will explore a full or partial sale.
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Doug Warbrick and Brian Singer, who own 72 per cent of the business, founded rip Curl in 1969.
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The Australian Financial Review says financial sources estimate the company could be sold for approximately $300 million.
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Billabong, also based in Australia, is currently in the midst of the due diligence process with two potential private equity investors.
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Here is the official press release from Rip Curl:
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MEDIA RELEASE
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Rip Curl Group is pleased to announce 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.
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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 organisations which have indicated a desire to invest in our company.
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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 recognises 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.
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