Volcom, a brand widely regarded for its presence in snowboarding and skateboarding, has been acquired by the French parent of the Gucci and Puma brands for $607.5 million.
“Volcom is arguably one of the most desirable global action sports brands with an authentic legacy rooted in surf, skate, and snow sports” said François-Henri Pinault, Chairman and Chief executive officer of PPR. “We admire Volcom’s brand management capabilities and the unique voice in which it speaks to its customers, expressed in high-quality, fashion-forward, innovative apparel and accessories. Volcom is complementary to Puma and we are convinced that its integration into our Sport & Lifestyle Group will speed up its development.”
PPR SA will pay $24.50 per share for Volcom’s stock, according to a statement issued Monday by both companies. The price represents 7.5 times Volcom’s earnings before interest, tax, depreciation and amortization, and a 24% markup over the stock’s closing price last Friday.
Richard Woolcott, Volcom’s Chairman and Chief executive officer added, “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, with its expertise gained through both Puma and its Luxury Group, could bring international market knowledge, sourcing capabilities and other operational expertise in areas such as product development and retailing to help the company grow Volcom globally, while preserving the elements that make the brands authentic.”