Is Quiksilver Buying Billabong?
There's a 150-million dollar deal on the table.
The term “surf business” can feel like an oxymoron.
Surf is sliding on waves and freedom and joy. Business is mergers and acquisitions and ugly red ties. But, as it turns out, you are not the only person in the world buying boardshorts and so surf has a business side — the ties are often blue though.
Like the ocean. Fun.
Anyway, in surf business news, Quiksilver — which is now corporately known as Boardriders — submitted an offer to buy Billabong this week.
The deal has been reported on by Reuters here. The main details:
-The offer clocks in at a cool 150 million USD ($1 = 1.3238 Australian dollars), which is 28% more than Billabong’s current value on the ASX.
-A US private equity firm called Oaktree Capital Management currently owns 19% of Billabong and a majority of Boardriders — so a takeover of Billabong would have them owning both.
-Billabong’s board has granted due diligence access — which means they’ve given Quiksilver the go-ahead to really snoop around before they decide whether or not to pull the trigger.
According to Reuters, "The company, whose brands include RVCA, Element, Von Zipper and Honolua Surf Company, has appointed Goldman Sachs as its financial advisor and Allens as its legal advisor."
So, if it all goes through, what does it mean for you? At this point, there’s no way of knowing. But it sure sounds like great Occ-cast fodder.