by The Editors on February 23, 2012
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.
[Link: Businessweek and Sydney Morning Herald]
by The Editors on February 22, 2012
In December of 2011 Chinese electronics manufacturer Signeo, the manufacturer of Soul by Ludacris headphones filed suit against new action headphone company SOL Republic claiming trademark infringement.
According to SOL Republic, Signeo has gone even farther and tried to obtain an injunction against the company saying that SOL Republic named their company specifically to confuse people.
In response SOL Republic says they did nothing of the sort:
We founded SOL REPUBLIC because we love music and how it positively effects our lives. . . We committed ourselves to make great sound more affordable for everyone. . . We like Ludacris. We like his music and we are truly friends. We have nothing against him. . . We don’t like the practices of Signeo, which licensed Ludacris’s name, nor of its President Bob Bonefant. . . We don’t like their attempt to intimidate our company and the really great people in it. . . We don’t like their army of lawyers from multiple law firms who are trying to get a judge to shut us down.
Headphones are apparently big business. For the rest of the SOL Republic statement, follow the jump. [click to continue…]
by The Editors on February 22, 2012
Vail Resorts has reportedly agreed to purchase Lake Tahoe’s Kirkwood Resort for approximately $18 million, according to a story in the Washington Post.
If the deal goes through, Vail Resorts would operate three world-class mountain resorts in the Lake Tahoe region, including Heavenly Mountain Resort in South Lake Tahoe, Northstar California on the north shore and Kirkwood Mountain Resort. . . Vail Resorts said Heavenly and Northstar pass holders will have access to Kirkwood and Kirkwood pass holders will be able to ski and ride Heavenly and Northstar.
Looks like the only thing left at Tahoe for Colorado to buy is the lake. We haven’t really had a reason to drive all the way down to Kirkwood anytime in the last decade, but there are some goods to be had there on occasion.
[Link: Washington Post via TWSnow]
by The Editors on February 22, 2012
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…]
by The Editors on February 22, 2012
It was Matt Kass and his passionate, creative, hardworking drive that created the Grenade Gloves brand as we all knew it. Yes, he was technically the co-founder, but he was the one who kicked it into over-drive from an old converted gas station in the tiny village of June Lake, California. It is the rest of the Grenade story that is not so clear. It includes family feuds, threats of lawsuits, bodily harm, and questions of sanity on all sides.
Yobeat’s Brooke Geery sat down with Matt Kass for his “Hump Day” interview and tried to get the Grenade story straight from the inventor of the Kassrole. Kass, who currently lives on the Oregon coast with his fiancé and young son, works as a professional fisherman but he still has action brand idea. Kass says:
It’s kinda cheesy. I sit around and everyone has their story about this or that. I was there, I know what happened. Some things that happened I still don’t understand. Like I ask myself, “what the fuck happened? What could I have done differently?” Then I was reading Yobeat and Colin’s interview and it all came together for me. It wasn’t about me. It was about a group of guys and a time and place…like a movement…like a band! And when they break up it’s never the same!
Follow the link for the rest. And yes, there’s some good stuff in this interview. Click the link to read the rest.
[Link: Yobeat]
by The Editors on February 16, 2012
Nixon co-founders Chad DiNenna and Andy 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…]
by The Editors on February 16, 2012
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.
Will be interesting to see if Billabong can remain independent. . . it’s not looking good. Especially when you read headlines like this one from The Australian: Billabong Beached As The Raiders Close In.
[Link: Bloomberg]
by The Editors on February 15, 2012
The Australian Financial Review is reporting that of the private equity firms interested in buying Billabong one has already offered $766 million for the company, according to a story in the Business Spectator.
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.
TPG owns 253 companies from varying sectors including 3 Day Blinds, Ceasars Entertainment, and Ducati to J.Crew and US Airways. Seems like Billabong would be a nice little drop in their very large bucket.
[Link: Business Spectator]
by The Editors on February 8, 2012
Westbeach Snowboard Shop and outerwear founder Chip Wilson (who is much more famous for founding Lululemon Athletica) has been named Distinguished Entrepreneur of the Year by the University of Victoria’s Gustavson School of Business, according to a story in the Times Colonist.
“Chip Wilson exemplifies the values of a visionary entrepreneur,” Peter Gustavson, founder and chair of the Distinguished Entrepreneur of the Year Award committee, said in a statement Monday. “He turned a passion for health and fitness into a world-wide movement and has inspired countless others through his unique outlook and commitment to quality. His values permeate everything he does.”
Wilson, who reportedly left his position as chief innovation and branding officer for Lululemon on Janaury 29, 2012, is staying on as chairman of the board. And, if Canadian Business magazine is correct, Wilson is the most successful snowboard shop owner ever with a current net worth of about $2.85 billion. Damn, shredder. That’s big dollars.
[Link: Time Colonist and Canadian Business]
by The Editors on February 8, 2012
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.
[Link: Sydney Morning Herald]
Private equity firm TPG Capital’s offer for Billabong is outrageously low compared to previous fashion label buyouts according to a story in Businessweek.
