Owner of outdoor clothing brand Rab explores sale
Equip Outdoor Technologies has appointed advisers to look at options
The owner of outdoor sports brand Rab has appointed advisers to explore options including its sale, according to two people familiar with the process.
Equip Outdoor Technologies, which also owns sister label Lowe Alpine, has in recent months enlisted bankers at Raymond James to weigh opportunities for Rab. Prospective suitors could be expected to value the business — founded in 1981 — at more than £150mn, according to one of the people.
The process was in its early stages, the people said, cautioning that there was no certainty a deal would be reached.
Equip declined to comment. Raymond James did not respond to a request for comment.
Equip posted a 25 per cent increase in revenues to £119.9mn for the year to January 31, according to Companies House filings.
The directors said they were “pleased” with the annual performance as adjusted earnings before interest, tax, depreciation and amortisation increased to £20mn during the period from £17mn the year before thanks to an uplift in orders from shoppers. However pre-tax profit fell to almost £14mn from £16.6mn.
The outdoor sportswear market boomed during the pandemic as consumers spent more time exercising and socialising outside, and some of those habits have remained. The sector is expected to achieve a compound annual growth rate of more than 6 per cent between 2022 and 2027, according to research firm GlobalData, from an estimated $17bn last year.
Rab started life as a prototype sleeping bag made by adventurer Rab Carrington and has grown into one of the most recognisable manufacturers of outdoor gear in the world. A women’s microlight alpine down jacket costs £210, while a Neutrino 400 down sleeping bag for temperatures of -7C can cost up to £480. Carrington sold the business to Equip in 2003.
Last month Equip chief executive Matt Gowar said he would step down to allow a fresh person to “bring new experience and leadership to strengthen the board” of the Derbyshire-based group. His exit comes 12 years after buying Lowe Alpine, 20 years after buying Rab and 30 years after importing his first glove range into the UK.
“Knowing that the business is in such a strong position, I look forward to finding someone who can step into the CEO role,” he said, adding that the search would be conducted next year.
Gowar is currently listed as the only person with significant control, owning between 50 per cent and 75 per cent of the company. Other shareholders include The Income & Growth VCT, according to the filings.
Equip has 26 manufacturing partners across Asia as well a UK manufacturing site, plus sales offices in eight countries across North America and Europe.