1. News
February 21, 2018

Super Retail Group to buy Macpac for $105m

Australian firm Super Retail Group has entered an agreement to acquire New Zealand-based outdoor gear brand Macpac Holdings (Macpac) for a total consideration of NZ$144m ($105m).

Australian firm Super Retail Group has entered an agreement to acquire New Zealand-based outdoor gear brand Macpac Holdings (Macpac) for a total consideration of NZ$144m ($105m).

The acquisition will help accelerate Super Retail Group’s strategy to build the adventure outdoors retail business across Australia and New Zealand.

Established in 1978, Macpac primarily offers own branded apparel, equipment and accessories across 54 stores.

Super Retail Group managing director and CEO Peter Birtles said: “The Macpac business has performed extremely well over recent years, yet there remains a significant opportunity to grow the business in the near future through opening new stores and growing its digital and commercial channels.

“The integration of the business with Rays provides an opportunity to position Macpac as the leading outdoor adventure specialist across Australia and New Zealand.”

“The integration of the business with Rays provides an opportunity to position Macpac as the leading outdoor adventure specialist across Australia and New Zealand, providing a much broader range of quality products, information and services than any other retail business.

“Super Retail Group will be able to leverage its capabilities in the supply chain, marketing, procurement and retail operations to add value to Macpac, while Macpac’s capabilities in design and apparel sourcing will add value to BCF and Rebel.”

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The acquisition is expected to be completed by 31 March.

Super Retail Group noted that it will fund the acquisition of these stores with existing debt facilities, and also intends to consolidate the Rays and Macpac businesses under the Macpac brand.

Birtles added: “The Macpac team are passionate, knowledgeable and proud of their heritage, their brand and their products. Importantly, they have a very similar culture to Super Retail Group.

“Alex Brandon and the wider team have built a successful business in a short period of time and have achieved strong growth momentum. We look forward to welcoming them as fellow team members.”

The combined business will be lead by Macpac’s management team, under managing director Alex Brandon, who will report to Super Retail Group’s leisure retailing managing director Anthony Heraghty.

Macpac is expected to generate sales of NZ$95m ($69m) and pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) of NZ$16m ($11.7m) in the year to 31 March 2018.

The company’s like-for-like sales growth and total sales growth in the nine months to 31 December 2017 were 7.4% and 20.9% respectively.