Zumiez takes on Billabong for West 49
Having entered into a definitive acquisition agreement to acquire Canada-based apparel, footwear, accessories and equipment retailer West 49 (see sportstextiles 01.07.10), surfwear brand Billabong has revealed that Zumiez may also be in the running.
Billabong had offered to buy the firm for C$1.30 per share; however, sporting goods firm Zumiez has since submitted a proposal offering “in excess of C$1.30 per share”.
The West 49 board says the proposal from Zumiez “would reasonably be expected to lead to a superior proposal” and has notified Billabong that, subject to the terms of the agreement, it intends to allow Zumiez to determine whether its proposal can become a firm offer.
The board said it would “continue to support the Billabong transaction and confirm their unanimous conclusion that the transaction with Billabong is in the best interests of the company and is fair to the company’s security holders.”
Billabong says it is not expecting the offer to impact on the existing transaction timetable.
