Watson merges Bendon with Australian company
UPDATED: Hanover Finance co-founder Eric Watson will maintain a shareholding in lingerie maker Bendon through Cullen Investments following a merger with Australia’s Pleasure State business.
In a statement just released, Bendon confirmed the deal and said the merger will increase the company's global sales platform with a wider range of brands.
The merged entity will be led by Bendon chief executive Justin Davis-Rice, with former Myer executive chairman, Bill Wavish, appointed as non-executive chairman.
“Bendon is an iconic New Zealand company with a proud heritage which has firmly established itself in Australia. I look forward to being part of the next phase of growth,” Mr Wavish said.
In 2003 Mr Watson’s Cullen Investments paid $58.7 million for Bendon, whose underwear labels include Elle Macpherson Intimates and Stella McCartney lingerie.
Mr Watson said the merger and having Mr Wavish join the board were very positive steps for Bendon.
“Bill’s extensive corporate and retail experience will be invaluable in the next phase of Bendon’s growth,” he said.
Cullen Investments will maintain a significant beneficial interest in Bendon, he said, without giving details.
Mr Davis-Rice signaled an aggressive growth strategy for the global lingerie company.
“Bendon’s size and scale makes the company a dominant force in the Australasian intimate apparel industry.
Mr Watson was valued at $220 million in the most recent NBR Rich List.
His other domestic assets include a half-share in Viaduct nightspot Soul and 75% of the New Zealand Warriors NRL franchise.
Unlike fellow Hanover co-founder, Mark Hotchin, Mr Watson has escaped much of the fallout from the collapse of the finance company.
Hanover entered a moratorium owing $554 million in 2008. Mr Hotchin and co-founder Eric Watson took $91 million in dividends in the years before the company defaulted on payments to investors, but argue that most of the cash went back into the company to repay related party debt.
Hanover investors subsequently voted to merge with Allied Farmers, a deal that has since soured with allegations of inflated loan values and referrals to the Serious Fraud Office.
The Financial Markets authority is investigating Hanover and has frozen some assets of trusts associated with Mr Hotchin.
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Comments and questions12
So the article is about the sale of Bendon lingerie yet you weave in the irrelevant bit about Mark Hotchin's woes. Why?
How is Hotchin tied up with the sale of Bendon? He isn't. You may as well weave in Watson's gardener whose wife buys Bendon or maybe his driver in London who clearly has an interest in the global platform of Bendon as he reads his girlie mag while waiting for Watson outside of the latest London nightclub.
It's sad the NBR can't stick to the facts of the story at hand but instead is so desperate it has to try and spice up its story.
True Boring BUT it would be interesting to see if Cullen purchased with funding from Hanover which was then repaid through the $91 million dividend would it not ?
So he has screwed over NZ and is about to drive Bendon in AU. Watch out AU shareholders
Front up Boring. You are the PR firm for Hotchin
"Took $91mil in dividends".
Mr Feeley - noted this sale and are Hanover investor's getting some money back? You appear to have all the answer's and we're still waiting...................................
i'm lost - first it was sold this morning, now its a merger
WTF
The Ockers have stolen our knickers!
word is that eric has been feeling so guilty about the position hanover investors find themselves in - that he decided to realise funds from bendon and repay the total proceeds to those original investors that can prove hardship.
my dear watson - sarcasm doen'nt become you
Sounds more like Watson looking for some cash....There hasnt been too many great business deals hes done lately...
An IPO would have been out of question....A trade sale difficult in this market; especially with collapsing retail sales figures..
A merger the only option, and chances are the Pleasure State business sales were declining also. Sure, there will synergies.
Watson motivation will be much needed cash to plug some holes in other business interest along with an exit from NZ, where he has not made many/any friends of late. We dont need characters like him, so good riddens Eric. One day you'll meet your maker.
Actually I'm a old fashioned journo that thinks reporting should be about the facts, not about spicing up some story to titillate readers.
The Bendon story was an interesting business report but the NBR lowered their reporting standards by bringing in irrelevant information about the shareholders in order to spice up the story.
I couldn't care less about Hotchin or Watson, but what I do care about is the level of reporting that is occurring in NZ and that the level of journalistic standards is falling to News of the World levels.
Actually I'm a old fashioned journo that thinks reporting should be about the facts, not about spicing up some story to titillate readers.
The Bendon story was an interesting business report but the NBR lowered their reporting standards by bringing in irrelevant information about the shareholders in order to spice up the story.
I couldn't care less about Hotchin or Watson, but what I do care about is the level of reporting that is occurring in NZ and that the level of journalistic standards is falling to News of the World levels.