A consortium led by Newbridge Capital has set a new deal size benchmark for Australian private equity by paying $1.40 billion for the Myer department store business including its flagship Melbourne building.
Myer is in the midst of a difficult turnaround and the execution risk kept local Australian private equity firms away from the auction. In the end, three overseas bidders slugged it out and Newbridge paid a very full price for a business that some analysts were valuing at zero not long ago.
Still, if any one can pull off this deal it's Newbridge and their American parent Texas Pacific. Together they have led many of the world's largest retail buyouts including Neiman Marcus, Debenhams, J Crew and Bally.
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