Quiksilver Parent Company Boardriders To Acquire Peer Billabong?

Surfing and limit

Quiksilver's parent company Boardriders Inc. went to Australia.

International Ltd. ASX:BBG (ASX:BBG) proposed mergers and acquisitions to stimulate the benchmark stock market to soar to a maximum of 23.1% to $0.96.

Inc. is willing to pay a cash 198 million Australian dollar for Billabong International Ltd., which is equivalent to 1 Australian dollars per share, a premium of 28.2% over the 30 day closing price of 0.78 Australian dollars.

In early 2012, TPG Capital Management, a private Holdings Company, offered to buy Billabong International Ltd. with a 850 million Australian dollar.

According to the world clothing and shoe net, Billabong International Ltd. issued a statement today that it will open accounts to Boardriders Inc.. It is expected that due diligence will take place within weeks. The group will update its shareholders at the right time.

Billabong International Ltd. and Boardriders Inc. (formerly Quiksilver Inc.) have gone downhill in recent years due to extreme sports fever and sports dress industry competition, and bad debts caused by bad management. Billabong International Ltd. Ltd. needs urgent financing in 2013. After restructuring, it continued to lose money in the last two years. In the past six years, it only achieved profits in the 2015 fiscal year.

The US business of Quiksilver Inc. was declared bankrupt in 2015. In February 2016, after its asset restructuring and debt relief, it was renamed Boardriders Inc. in March this year.

Behind the Billabong International Ltd. and Boardriders Inc. are Losangeles private Holdings Company Oaktree Capital Management LP.

In 2013, Oaktree Capital Management LP joined hands with Centerbridge Partners LP to finance Billabong International Ltd. for 6 years and 360 million US dollars in exchange for the shares of Billabong International. At present, the shares of the company are about 19%, and it is also one of the largest creditors of the latter.

In the bankruptcy reorganization of Quiksilver Inc., Oaktree Capital Management LP, also the largest priority creditor, gained more than 90% of the group's shares through debt to equity swap, and the debt of Quiksilver Inc. 8.26 billion dropped to less than 300 million dollars.

It was then reported that Oaktree Capital Management LP intends to merge Billabong International Ltd. and Quiksilver Inc..

Billabong International Ltd. is currently focusing on the three major brands of Billabong, Element and RVCA. In February of this year, the group sold the Australian swimsuit brand Tigerlily to the local private Holdings Company Crescent Capital Partners for 60 million Australian dollars.

Boardriders Inc. includes Quiksilver, Roxy and DC Shoes, and so on. In the past two years, the group has cleared more than $90 million in surplus stock, streamlined distribution channels, and cut costs. Although restructuring expenses are huge, it has yet to turn around deficits, but it is close to balance of payments.

At the beginning of the year, Greg Healy, President of Boardriders Inc. group, visited The Australian (Australian newspaper). It revealed that sales of Quiksilver Inc. declined by at least 150 million US dollars last year, compared with $1 billion 360 million in 2015, but its profitability has improved significantly. With the efforts to reduce promotional discounts, withdraw some authorized categories and clean up distribution channels, the profit margin of the core EBITDA EBITDA has risen from zero to 5%, which is close to 7% of the short-term target. Moreover, orders have been growing for the first time in many years.

In the 2017 fiscal year ended July 30th, Billabong International Ltd. Ltd. achieved a total sales of 974 million 700 thousand Australian dollars. The fixed exchange rate decreased by 6.7% compared with the same period last year. The three major markets in the Americas, Asia Pacific and Europe continued to decline, but overall sales in the same store grew by 0.1%, and e-commerce sales rose 22%.

The adjusted core profit EBITDA increased by 2.8% to 51 million 100 thousand Australian dollars per year, but the pre tax loss expanded from three Australian dollars to 67 million 400 thousand Australian dollars in the 2016 Australian fiscal year.

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Billabong, Quiksilver and Rip Curl are the three largest brands of surfing sports in the world.

Earlier this week, Australian media said it also had Billabong International Ltd., such as Von Zippers, Palmers Surf and Xcel, and had withdrawn from the acquisition of Rip Curl.

In September of this year, market sources said that Brian Singer and Doug Warbrick, founder of Rip Curl, have hired the US boutique investment bank Robert W. Baird & Co. Inc. and Australia's local processing sale.

Four years ago, Rip Curl also commissioned Bank of America Merrill Lynch to sell the US dollar Merrill Lynch, but it was reported that the offer failed to reach the expected Brian Singer and Doug Warbrick - 470 million Australian dollars, equivalent to 10 times the company's 2013 Doug.

Rip Curl has better management, performance and financial performance than Billabong International Ltd..

In the 2017 fiscal year, Rip Curl sells more than 1 billion Australian dollars, and its operating profit is 51 million Australian dollars.

Market speculation that Oaktree Capital Management LP, Sycamore Partners, Altamont Capital Partners and VF Corp. (Partners) Wei Fu group may be interested in the company.

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