October 9, 2014

Rip Curl IPO Back On The Cards

Rip Curl, a powerhouse in its own right but always looked on as ‘the little brand that could’ next to much larger stablemates, Quiksilver and Billabong, has lifted profits 60% after 24 months of restructuring. And despite the interesting experience of the bigger listed brands over the last few years with disclosure, the media and chasing quarterly results, they’re reportedly looking to take their company public.

To be fair, the founders are wanting to cash in on a lifetimes hard work. Exactly the same thing I’d be looking to do if I were them. But I would think that a sale to a private equity group or similar might end up making better sense for the long term viability of the company. A deal where they can maintain a genuine long term vision and not be swayed by what needs to be disclosed in the next twelve weeks. Where the information that needs to be put out can be minimised so that internal issues don’t become gossip on sites like this, and kill the internal vibe.

The company is valued at about $350 million – that’s $50 million down on the price they were asking back in 2012 but it’s a very different landscape now… One littered with the smoking wrecks of quickly executed and poorly timed retail strategies.

Check out more on this over here.

by Dave