A chance encounter with a merino wool grower and a prototype fabric inspired Jeremy Moon to embark on a two-decade journey that came to fruition in 2018 with the sale of his Icebreaker outdoor clothing business to American interests for $288 million.
Back in 1994, the 24-year-old Otago University marketing graduate says he was broke and “had absolutely no idea what I was doing” when he quit his research job, mortgaged his house and pioneered a new retail category in merino outdoor clothing.
“Starting out was hard” says Moon. “Those years were pure belief and perseverance. Giving up never entered my mind for a moment. At the time, synthetics were king and wool was a non-contender.”
Supported by a $200,000 investment from family and friends, Moon set about creating a global success story that sells product into 47 countries, employs 340 people and generates annual revenue of $220m.
Along the way, Icebreaker has had a helping hand from some astute angel investors. Sam Morgan’s Jasmine Investments and Sir Stephen Tindall’s K1W1 took minority stakes, and there was a major selldown in 2015 when Pencarrow Private Equity snared almost 38%.
The appointment of former Air New Zealand head honcho Rob Fyfe as chief executive in 2014 was another major turning point as he sought to inject more discipline into the business to attract a multi-national buyer.
According to Moon, the sale to VF Corporation, which owns iconic brands such as The North Face, Timberland and Vans, gives Icebreaker the largest platform in the world to tell its story and access new markets. “This is a once-in-a-lifetime opportunity for our global Icebreaker brand team and for our wool suppliers to introduce a whole new universe of consumers to the benefits of sustainably farmed, ethically sourced, New Zealand Merino wool.”
As the owner of a 33.88% stake, the Icebreaker sale netted Moon in excess of $97m. Added to that are dividends over the years, plus an estimated $14.5m plus from the selldown to Pencarrow, which received about $109m for its holding. Other beneficiaries of the sale include $27m for K1W1, almost $13m for Fyfe and $10m for members of the Moon family.
Recognised with membership of the New Zealand Order of Merit in 2008 for services to business, 48-year-old Moon loves diving, mountain biking, wine, long dinners with friends and introducing his three daughters to hiking, skiing and other outdoor adventures.