R.M. Williams, the revered Australian brand renowned for its top-quality boots and clothing, is reportedly making preparations for a potential sale that could kick off in September. Speculations have been swirling about the brand’s fate, with talks of an auction process being initiated by the brand’s financial adviser Goldman Sachs.
As reported in the Australian press, the anticipated sale is expected to fetch a hefty price tag of around A$500 million (€309 million), a figure that some analysts believe is quite steep given the current market conditions. The optimistic price expectations set by L Catterton, the private equity firm holding ownership of R.M. Williams, have sparked doubts regarding the level of demand that the brand will garner.
Experts interviewed by The Australian newspaper suggest that the high asking price may deter potential bidders, who could be reluctant to invest in the brand at such a lofty valuation. There are concerns surrounding whether the brand’s growth potential truly justifies the asking price, with some industry insiders proposing that a more modest valuation could attract stronger interest.
In spite of the uncertainties surrounding the impending sale, R.M. Williams has demonstrated impressive growth in recent years, with revenue surpassing A$142 million in 2018 from A$126 million. The brand’s partnership with global ambassador Hugh Jackman, alongside its loyal customer base and expanding product range, have all contributed to its success.
L Catterton initially acquired a 49.9% stake in R.M. Williams back in 2013, with further investment from super fund IFM in subsequent years. The brand has thrived under strong leadership and strategic collaborations, propelling its growth and prosperity in a competitive market.
As the sale process unfolds, industry analysts will be closely monitoring the response of potential buyers to the substantial asking price. While the future of R.M. Williams remains uncertain, one thing remains evident – the brand’s rich heritage and unwavering commitment to quality craftsmanship will undoubtedly sustain its status as a coveted name in the fashion industry.
Sources:
1. https://www.afr.com/street-talk/rm-williams-owners-ready-and-waiting-for-potential-sale-20210630-p5858l
2. https://www.smh.com.au/business/companies/rm-williams-could-fetch-up-to-500m-in-sale-process-20210630-p5859s.html
