dhawkins Posted April 28, 2004 Share Posted April 28, 2004 Marmot Mountain, Spyder on block by Kelly Holman Posted 04:32 EST, 27, Apr 2004 As summer approaches, twin auctions for outerwear winter apparel makers Marmot Mountain Ltd. and Spyder Active Sports Inc. are expected to attract strong interest from strategic acquirers and private equity firms. J.P. Morgan Chase & Co. has solicited preliminary indications of interest in recent weeks for Marmot Mountain, a Santa Rosa, Calif., outerwear apparel and equipment company whose sales run $80 million to $100 million, according to sources. J.P. Morgan was retained in February to sell Marmot, which could garner $125 million or more, a source said. J.P. Morgan is expected to sound out strategic acquirers like the Timberland Co. and jeans maker VF Corp., which owns the outdoor brands North Face, JanSport and Eastpak and which bought sneakers maker Vans Inc. in a deal announced Tuesday (see story at left). But the bank is also targeting select financial buyers, according to sources familiar with the matter. Marmot and J.P. Morgan officials declined to comment on the sale process. Meanwhile, in recent weeks New York investment banking boutique Financo Inc. and Wachovia Securities have jointly been pitching Boulder, Colo.-based Spyder, a winter apparel company. Officials from Spyder and Financo did not return calls by press time. A Wachovia official declined to comment on the sale process. While Marmot and Spyder both sell winter apparel, Marmot is geared toward outdoor wintersports enthusiasts of all types, particularly mountain climbers, whereas Spyder sells to the adrenaline-tinged downhill ski and snowboard crowd. Marmot sells a wide range of products, including outdoor apparel, packs, sleeping bags, tents, gloves and accessories. Marmot's investors include Trinity Ventures, a Menlo Park, Calif.-based venture capital firm that owns about 10% of the company, a source said. Spyder, meanwhile, is geared to serious downhill skiers, say observers. The company, which was founded by its chief executive David Jacobs, generates about $60 million in annual sales, according to sources. Its Ebitda is around $10 million, said a source. The Colorado company sells exotic-looking high-end ski apparel, which includes sleek, weatherproof ski jackets with special features and high-tech materials for men, women and children, as well as colorful, full-length racing body suits. While both companies are small in the retail apparel world, their brands are huge within the winter sports arena, say industry observers. "These are very special companies with customers that have an emotional connection with the brand," said Howard Davidowitz, chairman of Davidowitz & Associates Inc., a New York-based national retail consulting and investment banking firm. "This is like a religion." Given their strong brand names, both companies are likely to draw big private equity interest, he said. "Financial buyers love a powerful, dedicated brand and are also very good at growing brands and doing add-on acquisitions. " It remains to be seen what valuations Marmot and Spyder can command. One benchmark could be Portland, Ore.'s Columbia Sportswear Co. $36 million purchase in March 2003 of Richmond, Calif.'s Mountain Hardware Inc., which was 8 times Ebitda and 1.1 times revenue. Marmot and Spyder could go for 7 to 8 times cash flow, one investment banker estimates. Potential private equity bidders for both companies could include retail sector players like Bear Stearns Merchant Banking, J.W. Childs Associates LP, Bain Capital LLC, Falconhead Capital LLC, Saunders Karp & Megrue, Trimaran Capital Partners and Three Cities Research Inc. Quote Link to comment Share on other sites More sharing options...
lummox Posted April 28, 2004 Share Posted April 28, 2004 "This is like a religion." more like one of them cults. btw. i am waiting for tnf or marmot or arcteryyx to come out with duct tape colored clothing. Quote Link to comment Share on other sites More sharing options...
Dru Posted April 28, 2004 Share Posted April 28, 2004 The Colorado company sells exotic-looking high-end ski apparel, which includes sleek, weatherproof ski jackets with special features and high-tech materials for men, women and children, as well as colorful, full-length racing body suits. EXTREMO!!! lol Quote Link to comment Share on other sites More sharing options...
iain Posted April 28, 2004 Share Posted April 28, 2004 Quote Link to comment Share on other sites More sharing options...
gapertimmy Posted April 29, 2004 Share Posted April 29, 2004 cc.com has a bid in to buy marmot, we'll keep you posted Quote Link to comment Share on other sites More sharing options...
minx Posted April 29, 2004 Share Posted April 29, 2004 i don't think that $0.69 is goign to win the auction timmy Quote Link to comment Share on other sites More sharing options...
Greg_W Posted April 29, 2004 Share Posted April 29, 2004 I thought J.Lo was on the block? Quote Link to comment Share on other sites More sharing options...
EWolfe Posted April 29, 2004 Share Posted April 29, 2004 Quote Link to comment Share on other sites More sharing options...
catbirdseat Posted April 29, 2004 Share Posted April 29, 2004 MisterE, we all knew it was inevitable. Quote Link to comment Share on other sites More sharing options...
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