Providence Equity Partners, the private equity firm owner of Ironman, is understood to be exploring options for the company. According to a report by Reuters, this could include a potential sale or initial public offering (IPO).
Reuters reports that WTC has held talks with investment banks in recent weeks about appointing advisers that will help it explore its options. WTC reportedly has annual earnings before interest, tax, depreciation and amortization of more than US$50 million. The Reuters report adds that the company could be valued at more than 10 times that amount, including debt.
In 2008, private equity firm Providence Equity Partners became the owner of WTC (via the World Endurance Holdings entity) and with it took ownership of the Ironman brand and other properties, such as IronGirl, IronKids and the 5150 series.
Last summer, Ironman brand owner WTC took out US$240 million in financing. The majority of this, US$220 million, was be used to pay out a dividend to its shareholders. The financing deal raised a few eyebrows in some media reports, which focused on the use of the debt/financing predominantly to pay out a dividend rather than fund capital investment for the company.
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