Private equity firm TPG Capital’s offer for Billabong is outrageously low compared to previous fashion label buyouts according to a story in Businessweek.
Excluding extraordinary items, analysts now estimate Billabong will earn A$64.5 million in the year ending June 2012, according to data compiled by Bloomberg. TPG’s offer is worth almost 12 times that forecast, compared with the median bid of 24 times profit for takeovers of apparel makers greater than $500 million in the U.S., western Europe, and developed markets in the Asia-Pacific region, the data show.
In other words, TPG is offering half the average multiple for Billabong. In its analysis Businessweek questions what exactly TPG knows about the company that would cause it to make such a low offer. Are things that much worse than they appear? Or is TPG just out trolling for bargains?
For an in-depth look at the continuing Billabong situation, click the link and read the story. Or check out the Sydney Morning Herald’s piece A Tragedy of Errors.
IVI, the new eyewear joint between Rob Dyrdek, Fox Head‘s Pete Fox and designer Jerome Mage has announced the hiring of former RVCA Marketing Director Brian Garofalow as marketing director.
“Adding Brian to the IVI staff is an exciting step for us. His experience and background is a perfect fit for where we want to take the brand and having had prior success working with Rob is a great benefit. Our team is incredibly strong as we head into the launch phase of IVI.” Pete Fox, CEO, Fox Head, Inc.
IVI product is set to launch this spring. For the official word, follow the jump [click to continue…]
Snowboarder Eric Jackson has a new accessories sponsor now that he’s signed up with Los Angeles electronics covering company Hex.
“Practically everybody who sees my iPhone asks me where I got the case, not to mention the nano® watchbands and bags which completely blow them away,” said Eric. “It feels so good to be a part of a brand that supports me and makes such fresh products…the sky’s the limit!”
Now that he mentions it, those cases are pretty cool. . . follow the jump for the official word. [click to continue…]
Nixon co-foundersChad DiNenna andAndy Laats are smiling today as they find themselves back on the list of company owners after a deal announced today which valued the company at US$464 million.
Billabong has entered into definitive agreements with Trilantic Capital Partners (“TCP”) to establish a joint venture to accelerate the growth of the Nixon brand globally. . . Billabong and Trilantic will each hold approximately 48.5% of Nixon, a leading brand in the global youth accessory market, and management will purchase the remaining 3.0% stake. . . Billabong expects to realise net proceeds of approximately US$285 million1 as a result of this transaction, all of which will be used to repay debt.
In other words, Billabong sold half of Nixon to a private equity fund to raise cash. But, Laats and DiNenna will stay on as CEO and EVP of Marketing (and own three percent of the company) so everything is as it should be, it appears. One question: does this mean Nixon could have two different private equity firms as owners? That could get interesting.
For more official details on the deal follow the jump. [Photo: Todd Richards] [click to continue…]
Trading was halted today (Thursday, February 16, 2012) on shares of Billabong “pending an announcement on the strategic capital structure review,” according to a story on Bloomberg.
The company, which is due to report earnings for the six months ended Dec. 31 tomorrow, didn’t mention the Australian Financial Review report or say whether it received an approach. . . John Mossop, a spokesman for Billabong, said he couldn’t comment beyond the statement. A Sydney-based spokeswoman for TPG declined to comment.
Looks like there may finally be a trade show aisle-walking alternative the Nike Free as Supra rolls out the Owen their “first lightweight running shoe.”
[The Owen] features an ultra soft, blown EVA SUPRAFOAM® midsole. A synthetic mesh upper with microfiber reinforcements reduces weight and improves breathability. The rubber pads on the contact areas offer traction and even distribution of impact across the sole. Strong, durable, looped nylon webbing is used for the lace stays and heel pull tab, and in conjunction with rope laces, makes for quick and easy cinching.
The offer, said to be worth at least $3 a share, was reportedly presented to Billabong chairman Ted Kunkel this week, and would offer a premium of about 70 per cent to the stock’s last close of $1.79. . . The offer was believed to have been made by US private equity giant TPG. Private equity firms have of late targeted Pacific Brands, Spotless and PaperlinX.
The board reflects a sleek design, common to both Penny Skateboards and The Hundreds, featuring a black body and multi-colored “CMYK” themed wheels; It’s a unique twist on one of the most beloved boards in the world of skateboarding. The board can also conveniently fit inside The Hundreds Jon Backpack. This is Penny’s first collaboration with anyone – Producing only 400 boards they will be available at fine retail skate shops across the globe as well as The Hundreds’ flagship stores in Los Angeles, San Francisco and New York.
If you’re going to roll a Penny, this is probably the one you need.
The Sydney Morning Herald is quoting “sources close” to Billabong as saying that CEO Derek O’Neill will be “removed as CEO” soon thanks to “declining sales and rising debt,” but officially the company is denying that.
Billabong last night moved to quash rumors that embattled chief executive Derek O’Neill would soon be dumped by the board, amid growing concern among major investors about the surf wear company’s performance. . . Billabong chairman Ted Kunkel said last night: ”I categorically deny the suggestion.”
We’re going out on a limb to say that we think the board will do whatever they think is best for the stock.
Yesterday, we got to make a few laps with Burton’s Dave Downing and checked out the the new Anon M1 goggles with “Magna-Tech.” In the past swapping lenses usually resulted in fogged, smudged, and maybe even cracked lenses. We usually just get another pair of goggles before we swap out lenses. Those days are over with the M1. Magnets snap the lenses right into place just like that. . . rad.
Private equity firm TPG Capital’s offer for Billabong is outrageously low compared to previous fashion label buyouts according to a story in Businessweek.
