Remember when you were a little kid and you thought things like santa claus and true love actually existed? That was probably about the same time you thought surf companies were run by surfers. Then you grew up and realized how the world works. Volcom Entertainment, the Newport raised clothing company whose motto is “Youth Against Establishment” has been a publicly traded company for years now, has just been sold to a French Fashion Company called PPR for $516 million dollars. Sounds like the establishment has won.
Volcom’s CEO Richard Wooly Woolcott had this to say:
“PPR is the perfect partner to help take the Volcom and Electric brands to the next level of success. For more than 20 years we have worked to inspire a movement that provokes freedom of thought and expression, and celebrated this spirit through our athletes, worldwide events, rock tours, feature films and, of course, our apparel.”
PPR already owns PUMA shoes, among several others (including Gucci. yes, gucci), and Volcom owns Electric Sunglasses, so there will be much cross-branding maneuvering in the near future among the newly joined companies. No word yet on how this will affect headquarters and warehouses which are currently located in Costa Mesa, California.
PPR had previously shown interest in buying Quiksilver, until they showed some internal financial problems in 2010 which eventually ended the deal.
Within hours of the press release, a law firm launched a lawsuit claiming “possible breaches of fiduciary duty by the board of Volcom Inc in connection with the sale of the company to PPR”. Apparently this sort of thing is quite common, when it comes to mergers of this size. Lawyers…
Speaking of lawsuits, Volcom recently sued Skullcandy/ROC Nation for their collaborative headphones, citing that the ROC logo looks like the Volcom Logo.
As of today’s market close, Volcom’s stock climbed 24% throughout the day to close at $24.40, matching the $24.50 per share offer for current shareholders.