Australia’s surf-wear brand Rip Curl receives takeover offers

Australia's Rip Curl today said that it has received several unsolicited approaches from potential bidders, which would value the privately-held surf-wear brand at around A$500 million ($527 million).

The potential interesting Rip Curl comes after private-equity firms TPG International and Bain Capital have recently targeted Australia's iconic surf-wear company Billabong International.

Rip Curl said in a statement it has appointed Bank of America Merrill Lynch to advice on exploring these opportunities and may introduce an 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," Rip Curl said.

Founded in 1969 by Doug Warbrick and Brian Singer in Torquay, Victoria, Rip Curl manufactures wetsuits, surfwear, snowboard or mountainwear, and board bags, board covers, backpacks, and wallets.

Rip Curl operates its own stores in Australia, the UK, New Zealand, Europe, US, Canada, Peru and Israel. It has about 24 retail outlets in Australia and New Zealand

Warbick and Singer, who hold 72-per cent stake in the company, could take home over $150 million each if Rip Curl is sold for $527 million.
 
Rip Curl posted net profit of $7.9 million in 2011 on revenues of $362 million.
 
Early this month, struggling surfwear giant Billabong International said that it has received a A$694 million ($707 million) buyout offer from an unnamed second suitor that has matched an existing bid from private equity firm TPG Capital. (See: Australia's Billabong receives another A$694 mn offer from mystery suitor)

The Queensland-based company did not identify the new bidder that has made an A$1.45-a-share conditional cash offer, but several media reports named Boston-based private equity firm Bain Capital as the mystery suitor.