Home / Knowledge / News / Apparel/Garments / TPG withdraws Billabong acquisition proposal
TPG withdraws Billabong acquisition proposal
12
Oct '12
On Tuesday, 24 July 2012, the Board of Billabong announced that it had received an indicative, non-binding and conditional proposal from TPG to acquire all of the shares in the company for $1.45 cash per share by way of a scheme of arrangement. Billabong further advised on Friday, 27 July 2012 that TPG would be granted the opportunity to conduct non-exclusive due diligence.

Billabong announces that the unsolicited proposal from TPG has been withdrawn by TPG and discussions have ceased.

As a result, the formal process to evaluate change of control proposals that was announced on Thursday, 6 September 2012 has concluded. Billabong continues to implement its Transformation Strategy detailed on Monday, 27 August 2012. This strategy, under CEO Launa Inman, provides a clear pathway to unlocking the inherent value within the company.

“The Board is pleased with the progress around implementation of the Transformation Strategy and structural organisational change being driven by CEO Launa Inman,” Billabong Chairman Ted Kunkel said “Acting in the best interests of shareholders has meant that we have remained focused on implementing the Transformation Strategy throughout the formal process.”

The company today reiterates the financial outlook as set out in the full year results presentation announced on Monday, 27 August 2012. The company expects the current challenging retail trading conditions to continue during FY13.

Assuming no further deterioration in these conditions, FY13 EBITDA is expected to be in the range of $100-$110m in constant currency terms.

This compares to pro-forma FY12 EBITDA of $84m, excluding 100% of Nixon and significant and exceptional items.

The result is expected to be driven by:

  • The benefits from the previously announced Strategic Capital Structure Review
  • The additional benefits to be realised under the Transformation Strategy
  • Recognition of Billabong’s share of after tax Nixon JV profits

Based on first quarter performance, Billabong is on track to achieve this guidance.

Billabong is targeting EBITDA in FY16 of >2.5x FY12 pro-forma EBITDA of $84m through a range of initiatives, including simplifying the business, investing in key brands, building the global ecommerce platform and the globalisation and integration of the supply chain.

The Board believes Billabong has an attractive independent future as a leading global boardsports wholesaler and retailer. Billabong has established and grown a portfolio of unique brands, including Billabong, RVCA, Element and DaKine among many others, which are internationally recognised and globally distributed.

Billabong


Must ReadView All

Armtex Group gets incentives for textile unit in Armenia

Textiles | On 18th Mar 2019

Armtex Group gets incentives for textile unit in Armenia

Armenia recently granted textile manufacturer Armtex Group customs...

Pic: Gildan Activewear

Fashion | On 18th Mar 2019

Merger of athletic, leisure created new brands: Gildan

Merging of athletic and leisure categories in developed nations has...

Pic: Asteks

Textiles | On 18th Mar 2019

Asteks' AGV reduces workload in material transportation

AGV automatic guided vehicles developed by garment manufacturer...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

Claudia Kersten, Global Organic Textile Standard

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Sunil Rathore, Lacoste India

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


March 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search