60c - unbelieveable poor offer

Billabong's bargain price
Printer Friendly Version Email A Friend Add This

Billabong's bargain price
Posted Date: 09/04/2013
By Inside Retail


Surfwear retailer, Billabong, is expected to be taken over by the former head of Billabong's US division, Paul Naude, and US-based buyout firm Sycamore Partners, for just $287 million.

Naude and Sycamore are expected to take over the company with their 60c a share offer, a little more than a year after the company rejected a $3.30 a share bid from private equity giant, TPG, according to The Australian Financial Review.

The buyout, which is expected to be confirmed as soon as today, comes as the company rejected six other offers in the past year. Naude's bid values the surf and board sports retailer at more than $600 million, including more than $300 million in debt, deferred consideration and restructure costs.

The offer for the iconic company that was founded in 1973 reportedly topped that of VF Corp, the owner of brands including Vans, North Face and Wrangler, and its private equity partner Altamont Capital.

Billabong has posted six earnings downgrades in the past three years, with its bottom line swinging from $146 million profit in 2010 to a net loss of $276 million in the 2012 financial year.

Laura Inman, current CEO of the chain, was aiming to close 159 stores by June but she is likely be replaced under new ownership, the newspaper added.