Queens Lane Capital, the private equity investment arm of the LK Group, has entered into binding documentation to acquire The PAS Group.
The restructured group will consist of 166 retail stores in addition to the wholesale design and development businesses after 31 stores were closed and JETS was sold.
Key brands in the portfolio include Review, Black Pepper, Yarra Trail, Marco Polo, and Breakaway. Licenses include Everlast, Lonsdale, Slazenger and Mooks, Bluey, Disney and Peter Rabbit.
Chairman of Queens Lane Capital Larry Kestelman said he was excited about the opportunity to re-position the group for growth.
“We are proud to have saved circa 1,000 Australian Jobs and with a turnover of $200 million there are tremendous opportunities to further grow the PAS Group,” he said.
“A major focus will be on building the online business which has expanded to 25% during COVID-19 and developing a single customer view through further marketing and online investment.
“We will also look at new brand and license opportunities, category extensions, bolt on acquisitions and the growth of our expertise in creating private label products for other brands servicing our current and future department store relationships.”
The current management team led by CEO Eric Morris will remain in place to be overseen by a new board that will be formed and led by Larry Kestelman.
"Larry is one of Australia’s most successful entrepreneurs whose vision for growing business is unrivalled,” Morris said.
“There are opportunities to grow the PAS Group by leveraging the QLC and LK Group financial strength, relationships and expertise. As we emerge from COVID-19 we are very excited about the opportunities ahead for the group.”
Queens Lane Capital’s Managing Directors, Nicholas Tsoumanis and Boris Rozenvasser, said QLC had a strong appetite for acquisitions in the current environment, with a mandate to complete two to three deals in the next 12-18 months.
“We are looking closely at restructuring and recapitalisation opportunities, with a strong focus on special situations, turnarounds, corporate carve-outs and management buyouts of companies with a turnover of $50 million and above,” Tsoumanis said.