PAS Group has been rescued from collapse after Queens Lane Capital, the private equity branch of LK Group, entered the bidding war for its acquisition.
“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,” said Larry Kestelman, the Chairman of Queens Lane Capital.
PAS Group currently houses brands such as Review, Yarra Trail, Marco Polo, Black Pepper and Breakaway. Licenses in its portfolio include Slazenger, Lonsdale, Everlast, Bluey, Disney, Mooks and Peter Rabbit.
“A major focus will be on building the online business which has expanded to 25 percent during COVID-19 and developing a single customer view through further marketing and online investment.,” Kestelman explained.
“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 relationship.”
The current CEO of PAS Group, Eric Morris, will remain in place but will be overseen by a new board, formed and led by Kestelman.
PAS Group filed for voluntary administration in May 2020. The Group currently operate more than 220 stores and has about 1000 members of staff.
“Larry is one of Australia’s most successful entrepreneurs whose vision for growing business is unrivalled,” said Morris.
“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.”
Managing Directors of Queens Lane Capital, Nicholas Tsoumanis and Boris Rozenvasser, believe that the private equity arm is in a strong position for acquisitions, with a mandate to complete two to three new deals within 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,” explained Tsoumanis.
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