Deus Ex Machina up for sale

Deus Ex Machina, founded by Griffith-born Australian Dare Jennings, is up for sale according to a report in the Australia Financial Review.

The AFR reported that Jennings, who also co-founded Mambo in 1984, is in discussions with at least one private equity firm to sell the custom motorcycle company and clothing brand on the eve of its 10th birthday.

The sale transaction is being advanced with L-Capital, the private equity arm of LVMH Group, one of the world's largest luxury goods companies. L-Capital already has stakes in companies like RM Williams and 2XU.

If the sale goes ahead, 65-year-old Jennings plans to stay involved with Deus Ex Machina, which now has flagship stores in countries such as Indonesia, Japan, Los Angeles and Milan — and a number of retail outlets such as Glue Store and David Jones in Australia.

However, according to Jennings, the company has continued to reinvest and barely makes a profit. Deus generates around $25 million in annual revenue.

"Any buyer, whether it's private equity or anyone else, has to know the culture is critical to the brand, and anything we do in the future has to take that into consideration. There's no point making money and killing the golden goose," Jennings told the AFR. "Pretty much every country in the world we've taken this concept to wants to participate. We've created the platform; the harsh reality is we need cash to grow from here," he said.

Jennings is the majority owner of the company alongside business partners Carby Tuckwell and Barry Davies.