Clothing manufacturer Pacific Brands has released an update regarding its possible acquisition and confirmed its outlook on financial results for the second half of 2012.
The company, which owns iconic brands such as Bonds, Berlei and Diesel, announced earlier this year [January 10] that it was considering an unsolicited approach from private equity outfit KKR regarding a possible takeover of the entire issued capital of the company, and preliminary discussions were being held.
On February 17 this year, the company further announced that other enquiries had been received which the company was also considering.
However, having “explored these enquiries”, Pacific Brands has now confirmed that “a definitive proposal for the acquisition of the entire issued capital of the company is unlikely to be forthcoming in the near term”.
The company has also taken the opportunity to reiterate its outlook for the second half of the 2012 fiscal year, with guidance unchanged since the interim results release this February.
Earnings before interest and tax (EBIT) and net profit after tax (NAT) are both expected to be down, along with underlying sales, due to continuing weak retail conditions and changes to the customer base.
A a result, EBIT for the 2012 financial year is expected to be in the range of $125 to $130 million.