Bain makes move in Germany

The US buyout firm has acquired the German division of US outdoor equipment manufacturer Johnson Outdoors Inc for over E60m.

Bain Capital, the US private house that recently participated in the LBO of Burger King, has acquired Jack Wolfskin, the German division of US outdoor recreation products manufacturer Johnson Outdoors for E64m.

Jack Wolfskin, which makes outdoor clothing, footwear and equipment, is being sold to Bain as the US vendor looks to consolidate its core operations in the outdoor equipment business.

Wolfskin, based in Idstein, has been a profitable business for Johnson, contributing approximately 14.4 per cent and 32.4 per cent of Johnson Outdoors' sales and operating profit, respectively.

Bain is keen to make this the first of a number of acquisitions in German deals. Alongside Carlyle Group, Bain is currently conducting due diligence German automotive parts supplier Edscha in a public to private transaction that could value the group at up to E250m.

The sale will enable Johnson Outdoors, which was advised by Dresdner Kleinwort Wasserstein, to record a pre-tax gain on the sale of approximately $29.8m. The proceeds will be used to reduce debt.