TPG surfs the waves to come in and shop for new 'boardies'

Barely a month has passed since the unsolicited approach by KKR to buy Australia's Pacific Brands, and this morning  Europeans woke to hear that another PE group, TPG Capital, has made an informal offer to buy Billabong International for a reported USD 823m.

Billabong is an iconic Australian brand that has become popular all over the world with surfers, skiers, snowboarders and label conscious youth. However, the company has, like many retailers, experienced difficult trading conditions that have resulted in a dramatic slide in its share price and a strategic review in terms of store closures, job cuts and asset sales.

If the offer of AUD 3 per share reported to have been offered by TPG is correct, whilst this a premium on the average trading price of Billabong shares over the last few days, no doubt Billabong's shareholders might consider it to be a cheeky and highly opportunist opening shot!

Filed under: brands, fashion, PE, Australia