What do you know. Billabong has apparently gone into “exclusive discussions” for a 10-day period with Paul Naude and his big wallet backers (Sycamore Partners) regarding a $299 million purchase of the Billabong brand, according to a story on Fox Business.
The cash offer values the company at about 287 million Australian dollars (US$299 million) excluding debt, confirming a report by The Wall Street Journal on Monday. . . A separate consortium involving VF Corp. (VFC), the owner of brands including The North Face and Timberland, and Altamont Capital Partners had earlier made an indicative offer to acquire Billabong but has now been frozen out of talks.
Of course the founders of Billabong (Gordon Merchant, et. al.) would want one of their lieutenants to buy the company back now that they’ve drained every drop of shareholder value out of the company. Doing a deal with VF Corp., while arguably being better for the brand’s future survival, would mean the old guard would all be out of the mix. And it seems the old guard is still at the wheel of Billabong’s ship.
[Link: Fox Business and The Wall Street Journal]
