NY TIMES: PPR to Buy Volcom, a Sportswear Maker

Date: 02-May-2011

By Chris V. Nicholson

PPR, the French luxury goods group that controls Gucci and Puma, said on Monday that it had agreed to buy the sports accessory and clothing company Volcom for $607.5 million.

The Volcom board has approved the offer of $24.50 a share, nearly 25 percent above the closing price of $19.73 on Friday. The board and company directors will tender their 14.4 percent of the company in support of the deal, which is expected to close in the third quarter.

François-Henri Pinault, head of PPR, said in the statement that Volcom, based in Costa Mesa, Calif., was “one of the most desirable global action sports brands” and noted that it would be “complementary to Puma.” Volcom makes clothing geared toward sports including surfing, snowboarding and skating.

Mr. Pinault’s company has been turning its focus toward luxury and sports, and away from other sectors. He sold its furniture unit, Conforama, to Steinhoff this year, and has taken the management of Gucci into his own hands.

PPR hired the Peter J. Solomon Company as its financial advisor, and Wachtell, Lipton, Rosen and Katz as legal counsel. Volcom hired Wells Fargo Securities to advise its board, and Latham & Watkins as legal counsel.

PPR shares rose 1.05 euros, or 0.87 percent, to 121.80 euros ($180.74) on Monday in Paris.

Copyright 2011 The New York Times Company