Troubled Australian surfwear retailer Billabong just announced a deal struck with a consortium led by private equity firm Altamont Capital Partners that will rescue the company from its dire financial position.
Billabong chief executive Launa Inman has been replaced by Scott Olivet, who becomes CEO and managing director. He’s a clothing industry veteran whose previous roles include CEO of Oakley, VP at Nike, and senior VP at Gap, Inc. He’s worked across a range of lifestyle clothing brands and is a director at headphones company Skullcandy.
Billabong will sell off Dakine, the extreme sports accessories brand, and Altamont will have two directors on the board as part of the deal. Altamont recruited Olivet earlier this year as it mounted a campaign to buy Billabong.
The company’s shares were placed in a trading halt this morning with the company saying it was close to an announcement about the future of the company.
Here’s what the company had to say about Olivet’s experience and his share obligations:
Billabong also announces its intention to appoint Mr. Scott Olivet as Managing Director and CEO of Billabong. Scott is a highly experienced and well regarded action sports executive. He was formerly Chairman and CEO of Oakley, Inc. and prior to that served as the Vice President, Nike Subsidiaries and New Business Development where he led the portfolio of non-Nike brands, including Converse and Hurley, both of which reported to him. While at Oakley, Scott drove 14% compound annual growth in EBITDA and delivered an annualised return to shareholders of 28% until its ultimate
acquisition by Luxottica. Most recently, he served as Chairman of Collective Brands where he led the company’s strategic review and ultimate split/sale of the business. Scott currently serves on the board of Skullcandy, an action sports based electronics and lifestyle company. Scott received a Masters in Business Administration from Stanford University Graduate School of Business and a
B.A., Government from Pomona College. As part of his commitment to the Company, Scott has stated that he intends to purchase 11m ordinary shares in the Company with the option, at his election, to purchase an additional 4m shares (up to 15m ordinary shares in total). Such purchases will occur on or before the close of business on Friday, 26 July 2013 and before the appointment to his role. Mr. Olivet may satisfy these purchases, at his option, by either purchasing shares on the open market or by subscribing for newly issued shares from the Company at A$0.23 per share. At $0.23 per share, Scott’s total obligation to purchase shares would be A$2.53 million.
Olivet’s terms are still being finalised and Billabong will convene a shareholders’ meeting to approve the deal.
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