CHAMP puts Sheridan deal to bed

CHAMP Private Equity, the Sydney-based buyout firm, has sold portfolio company Sheridan, a bed linen business, to retailer Pacific Brands for AU$62m.

Australian buyout firm CHAMP Private Equity has sold bed linen firm Sheridan to Pacific Brands in a AU$62 million (€39 million; $47 million) transaction.

The deal sees Pacific Brands, which is pursuing a strategy of bolt-on acquisitions, add the Sheridan and Actil brands to its existing home comfort brands Sleepmaker, Tontine and Esprit.

During its period of ownership of Sheridan, CHAMP carried out one of its stated preferred strategies, namely to take a business that’s largely focused on the domestic Australian market and grow it by exploiting an Asian angle. In this case, production was outsourced to China via a strategic partnership with Chinese consumer products trading company Li & Fung Ltd.

In the fiscal year 2004, Sheridan reaped annual sales of AU$160 million and earnings of AU$13 million.

“The acquisition represents a significant opportunity for Pacific Brands to grow in the bed and bedding accessories categories and continue to leverage synergies through its existing scale,” said Pacific Brands in a statement.

CHAMP Private Equity closed its second buyout fund on AU$950 million in August, beating an initial target of AU$750 million in the process. The fund was able to boast the first Japanese institutional investor in an Australian buyout fund when Mizuho Bank was persuaded to commit.