Rip Curl is up for sale

Industry News

Rip Curl is up for sale

Surfersvillage Global Surf News, 17 September, 2012 : - - Rip Curl is up for sale according to a report in The Australian Financial Review this morning. Rip Curl founders, Doug “Claw” Warbrick and Brian “Sing Ding” Singer together own 72 per cent of the company. Rip Curl has hired Bank of America Merrill Lynch to explore a partial or full sale of the business.

Mr Warbrick and Mr Singer founded Rip Curl at a time when surfing was a cottage industry. The company initially made surfboards but a year later began producing wetsuits. Rip Curl has since become one of the largest boardwear brands in Australia, Europe and South America, sponsoring hundreds of events every year including the Rip Curl Pro at Bells Beach.

In addition to selling to independent retailers worldwide, Rip Curl operates corporate stores in Australia, New Zealand, Europe, USA, Canada, England, Israel, South America and South Africa. About half its sales come from Australia.

While Billabong and US-rival Quiksilver opted for stockmarket listings as a way of fuelling global expansion, Rip Curl has remained a private company. Australia Post boss Ahmed Fahour is Rip Curl chairman and owns 2 per cent of the company. Francios Payot, a director and founder of Rip Curl Europe, owns 16 per cent of the company while the rest is held by other management.

An information flyer provided to possible buyers estimates Rip Curl’s sales at $400 million in sales in the 2012 financial year and earnings before interest, tax, depreciation and amortisation at $40 million. Current year forecasts stand at $47 million EBITDA.

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source: AFR   

Author: Carrie LaFrenz

Tags: Rip Curl

industry: Surfersvillage