Australia’s biggest surf-wear maker has been given a proposal of A$3 a share from TPG – valuing the company at A$ 765 million (Bloomberg). Although not certain at this time, the offer was subject to due diligence, exclusivity and the company not selling off assets or ownership in its other brands.
The deal with TPG Group, comes after Billabong announced it will sell approximately 48.5% of its stake in their global youth brand Nixon to Trilantic Capital Partners (TCP) . The Deal will see Billabong receive net proceeds of US$285 million, which will be used to repay debt.
Charlie Moore, partner at TCP, said: “We are thrilled to be partnering with Billabong and with Nixon’s founders, Andy Laats and Chad DiNenna, to support Nixon in its next phase of growth.”
Billabong acquired the brand in 2006 for approximately US 55 million and deferred payment of approximately Us $76 million in 2012.
Today, Billabong announced its financial results for the six months ending 31st December 2011, with the company reporting global sales revenue of 847.2 million. Earnings before interest, tax, depreciation and amortisation were down 8.3 per cent to $74.1.