This week it emerged private equity outfit Anchorage Capital had signed up Goldman Sachs and Macquarie for an IPO of consumer electronics chain Dick Smith.
Anchorage, according to the Australian Financial Review, will divest its entire stake. That’s its policy with businesses it flips.
But Anchorage principal Phil Cave plans to put some of his own money into Dick Smith shares, he told the newspaper.
According to the article, the firm is expected to earn close to five to six times EBITDA from the Dick Smith acquisition. It purchased the brand from Woolworths last year for $20 million.
In the 12 months to June, Dick Smith made $80 million (before interest, tax, depreciation and amortisation).
Under Woolworths, for the same period, it made $36 million.
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