Paul Naude, Australia-based Billabong International Ltd.’s Americas president, wants to purchase the action-sports apparel company.
Naude is talking with debt and equity financiers about a potential leveraged buyout of Billabong International, officials recently said. He will step away from activities as Americas president and board member for six weeks while pursuing the matter.
Naude—a former pro surfer from South Africa with deep experience in action-sports industry—is based at the Irvine headquarters of Billabong USA Inc. He was appointed president of the Americas region in May. The Americas region includes the U.S., Canada and South America.
Billabong shares, which trade on the Australian Securities Exchange but not in the U.S., closed up about 10% there on Nov. 19 for a market value of $333 million.
Peter Bryant, regional chief financial officer for the Americas, will take over Naude’s general and wholesale business responsibilities during the interim period. Colin Haggerty, retail executive for the Billabong group, will supervise retail operations.
During the six-week period—which could be extended with board approval—Naude is barred from speaking with the private equity firms that recently pulled bids to acquire Billabong. He is also prohibited from providing confidential company information to potential financiers.
Naude is credited with building Billabong’s U.S. business after he was named its president in 1998 and established Billabong USA. Billabong International had 634 stores at the end of June, with one-third in the Americas region. The company has been shutting underperforming locations and expects to shrink its global footprint to 552 stores by next summer.
The possibility of a management-led buyout of Billabong International follows interest from at least a couple outside parties.
Texas-based TPG Capital LP pulled its $713.7 million offer for Billabong in October after a period of due diligence.
Billabong, before the private equity firm withdrew its bid, said the firm had “expressed concerns in relation to some issues.” Billabong didn’t elaborate. An earlier bidder—thought to be Boston-based private equity firm Bain Capital LLC—also ultimately pulled its bid.
Billabong makes clothes, shoes and accessories under its namesake label and local brands including RVCA, Element, Honolua and Von Zipper.
—Kari Hamanaka
