{"id":51073,"date":"2017-02-23T12:42:44","date_gmt":"2017-02-23T19:42:44","guid":{"rendered":"http:\/\/www.boardistan.com\/?p=51073"},"modified":"2017-02-23T12:47:35","modified_gmt":"2017-02-23T19:47:35","slug":"billabong-does-a-business-thing","status":"publish","type":"post","link":"http:\/\/www.boardistan.com\/?p=51073","title":{"rendered":"Billabong Does A Business Thing"},"content":{"rendered":"

So, today Billabong<\/strong> announces they’re selling the Tigerlilly<\/strong> fashion brand. And while we couldn’t care less about the news, what we always find comical in these transactions is what the company says about the transaction and how it fits right in with the company’s fiscal plans (plans that are always in direct opposition to the reasons the company bought the brand in the first place).<\/p>\n

For example, in December of 2007 when Billabong bought Tigerlilly then CEO Derek O’Niell<\/strong> said: ”We have been seeking to expand our girls business and Tigerlily, with its accent on swim, is very complementary to our Billabong Girls brand.”<\/p>\n

Now, seven years later, while selling the brand Billabong says: “The transaction is in line with Billabong\u2019s strategy to simplify its brand portfolio.”<\/p>\n

See what they did there? In an odd twist (at least for Billabong) this sale will reportedly generate more revenue than the company originally paid for the brand. The sale will reportedly generate $60 million and they only paid $5.8 million for seven years ago. Usually, it’s the other way around. Follow the jump for the official release.<\/p>\n

<\/p>\n

SALE OF TIGERLILY
\nGOLD COAST, 23 February 2017: Billabong International Limited (\u201cBillabong\u201d) today announced it has entered into binding documentation to sell the Tigerlily business to Crescent Capital Partners. The transaction is in line with Billabong\u2019s strategy to simplify its brand portfolio.<\/p>\n

The sale of Tigerlily will raise $60 million, with net proceeds from the sale used to retire debt. The business was acquired in December 2007 for $5.8 million.<\/p>\n

Tigerlily\u2019s revenue was approximately $30 million for the twelve month period ended 31 December 2016 and on a full year basis was expected to contribute between $7 million and $8 million in EBITDA to Billabong for the 2017 financial year.<\/p>\n

Further details will be provided with Billabong\u2019s half year results announcement tomorrow.
\nThe transaction is subject to conditions precedent which are typical for transactions of this type, with completion expected before the end of the current financial year.<\/p>\n

Billabong was advised by Houlihan Lokey and Baker McKenzie on the transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

So, today Billabong announces they’re selling the Tigerlilly fashion brand. And while we couldn’t care less about the news, what we always find comical in these transactions is what the company says about the transaction and how it fits right in with the company’s fiscal plans (plans that are always in direct opposition to the reasons […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[10,12],"tags":[],"_links":{"self":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/51073"}],"collection":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51073"}],"version-history":[{"count":4,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/51073\/revisions"}],"predecessor-version":[{"id":51077,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/51073\/revisions\/51077"}],"wp:attachment":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51073"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}