The Utah-based company has received a second acquisition offer, following their merger agreement with Incipio LLC
Almost immediately following the announcement that Skullcandy and Incipio LLC ha entered into a merger agreement, it has been reported that the company has received another offer for acquisition, this time by Mill Road Capital.
Skullcandy had previously announced that it had entered into a merger agreement with Incipio LLC, on June 23, 2016. On June 24th, the company announced that its board of directors had received an unsolicited offer from Mill Road Capital. According to the conditions of the merger agreement between the headphones maker and Incipio LLC, the audio company has until July 23, 201, to consider superior offers from third party investors considering buying their company.
The merger between Skullcandy and Incipio LLC states that Incipio would acquire all of Skullcandy’s outstanding common stock for $5.75 per share in cash, equalling approximately $177 million. Mill Road Capital has made an offer to buy the outstanding stock for $6.05 per share in cash.
Skullcandy has said of the offer in accordance with their merger agreement, “Skullcandy’s board of directors, in consultation with its financial and legal advisors, will carefully review and consider the Mill Road Capital proposal to determine the course of action that it believes is in the best interest of the Company and its stockholders.” The company will continue its efforts during the “go-shop” period to elicit alternative offers from additional third party investors.
There can be no assurance that the offer from Mill Road Capital, or any offer from another third party investor, will supersede the merger agreement with Incipio LLC. Skullcandy is making no additional comment on the offer from Mill Road Capital or any other investor.
This news comes in the midst of rumors that founder Rick Alden may be attempting to take the company private.