The Australian Financial Review
Simon Evans

Private equity backed fashion company the PAS Group has made three acquisitions including the Review women’s fashion chain ahead of a potential stock exchange listing as early as next year.

The acquisitions will add a combined $10 million in profit to PAS, to push its annualised earnings before interest and tax to between $30 million and $35 million.

Review, which targets the highly competitive 18 to 35-year-old female fashion sector, runs 14 outlets in Victoria, NSW, Queensland and Western Australia and 14 concessions inside Myer department stores. It employs 180 staff.

Chairman Bob Dalziel, a former Mayne Group and Coles Myer executive, is also chairman of the Affinity Capital Partners vehicle that this year bought just under 90 per cent of listed fashion retail company Colorado Group.

Alex Varley, one of the founding executives of private equity firm Catalyst Investment Management, joined the board earlier this year.

PAS, formerly known as Pacific Apparel Solutions, has also acquired the Capelle business, which specialises in fashion accessories such as handbags and belts.

The third acquisition is the Fiorelli fashion brand, which produces a range of eyewear, watches, shoes and handbags.

Chief executive Eric Morris said PAS intended to make further acquisitions in the fashion sector, which was still highly fragmented. “There’s still a lot of opportunities in the industry,” he said.

PAS’s major shareholder is DB Capital Partners, the private equity arm of Deutsche Bank, which first invested in the entity in 2004, when it acquired the Yarra Trail clothing operations.

Mr Morris, who was head of Myer’s private label division until August 2005, said a stock exchange listing was one option the group would consider from next year.

“We are now sizeable enough to do something and to create some attention,” he said.

But he emphasised that PAS had made no decision. “It will be at the right, opportune time,” he said.

Mr Morris said that PAS would expand the Review chain through increasing its number of stand-alone stores and concession outlets.

Review was a strong brand and was flexible enough to lure customers older than 35 years of age.

“It’s got quite a bit of stretch above the 35-year-old mark,” he said.

PAS owns a string of apparel businesses that produce brands including Yarra Trail, Black Pepper, Breakaway and Yvonne black.

Mr Morris declined to comment on the company’s total turnover after the three new acquisitions.

Industry players estimated it was well in excess of $200 million.