Surf brands are causing quite the stir and it’s not even summer yet!
Surf wear giants Billabong and Quicksilver are both heading to very different directions with Billabong considering several takeover bids while Quicksilver is teaming up with the multi-national corporation – Adobe for its new season range.
A US private equity group has made the second bid for Billabong with the first bid received February this year. The bid states a “cash consideration value of around $1.45″ per share, to rival the TPG offer of about $695 million, which Billabong previously said undervalued the company. As a result, the Billabong board has stated that it does not believe that the current proposal by the anonymous suitor “reflects the fundamental value of Billabong in the context of a change in control transaction”.
However, Billabong said the proposal for the moment is subject to due diligence and condition on a number of “other matters equivalent to those in the TPG proposal”.
A confidentiality agreement has been agreed, and as a result Billabong has also granted the party the opportunity to conduct non-exclusive due diligence. This is in order to reduce the conditionality of its proposal and to improve its understanding and valuation of the company and its assets. Billabong said the process is expected to take several weeks, but would not comment further except to say that there is no guarantee that, following this process, a transaction will be agreed or that the board will recommend any proposal.
On a brighter note, Quicksilver has launched a local competition titled ‘Design Our Line’ in cooperation with Adobe Australian & New Zealand on their Facebook page. The competition generated more than 260 entries with fans creating their own tshirts that were sold in Quicksilver stores and online. This move generated a huge fan base and successfully boosted Quicksilver’s new season launch.
Adobe ANZ managing director Paul Robson added that “We’ve been blown away by the response of our Facebook community and the outstanding quality of entries. We’re also thrilled to work with Quiksilver and be able to offer our fans an opportunity to test out Creative Suite 6 in a fun and creative way,”
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