AUCKLAND, 4 November — Peninsula Credit has led a syndicate of New Zealand lenders; Aotea Asset Management and Kiwibank, to finance the management buyout of Rodd & Gunn, giving Chief Executive and Director Mike Beagley 100% ownership of the menswear brand.
Peninsula Credit was lead arranger of the multi-million-dollar facility, which refinances Rodd & Gunn’s existing bank debt, funds the buyout and supports growth in the UK, US and Canada, while continuing to support its established operations in New Zealand and Australia.
Kiwibank provides Rodd & Gunn’s working capital facilities in New Zealand, including bank guarantees, foreign exchange and hedging facilities.
“Rodd & Gunn is a brand I care about deeply, and I want it to be a brand all of New Zealand can be proud of as we continue to grow on the world stage,” says Beagley, who has led the company since 2001. “The shareholders who backed us over the years helped build the business into what it is today. Owning it outright means I can keep investing in the brand, and the team behind it, for the long term.”
“A buyout and growth across several countries made this a complex deal, and it needed more flexibility than a standard bank facility offers. That is where private credit can work well,” says Peninsula Credit Managing Director Andrew Pryde.
“Rodd & Gunn is established, with strong operating cash flow, which is what we lend against,” says Pryde. “For our investors, it means their capital, alongside ours, is working in a proven New Zealand business, with senior security behind it.”
“The team behind Peninsula have known us for more than 20 years and understand how the retail market works, so they built the funding around our plans,” says Beagley. “It’s great to be working with local partners. Peninsula and Kiwibank are New Zealand businesses, like us, and their support gives us a strong base at home while we build the brand overseas.”
“Rodd & Gunn shows a deal like this can be funded here, by people who know the business and the market. New Zealand businesses that are ready can find the capital right here,” says Pryde. “Backing Kiwi businesses is why we exist.”