Lafuma has completed its initial acquisition of Oxbow from the majority shareholder, Teahupoo, gaining 63.7% ownership of the company. Lafuma will now submit a draft standing offer at a price of 10.75 per OXBOW share cum-dividend and as a result OXBOWs share price will be suspended. Lafuma has already paid 25.8 million ($31.5 million) for 2.4 million shares.
Oxbow posted 60.3 million ($75.0 million) in total turnover last year with an operating profit of 5.5 million ($6.9 million) and net income of 2.5 million ($3.1 million). The final purchase price values Oxbow at 40.7 million, or 0.7X Sales and roughly 6.4X EBITDA.
Following the takeover, Oxbows Supervisory Board was changed to reflect new ownership structure. It now consists of Christian Hass, Chairman, and François Chapuis, both directors of Lafuma. Vincent Huguenin was re-appointed as an independent member of Oxbows supervisory board. Philippe Joffard, Chairman of Lafuma, was appointed Chairman of Oxbows Board of Directors and Dominique de La Tournelle, who was appointed Managing Director of Oxbow, remains a Member of the Board of Directors.
The Parisian investment community seems to think this is a good move for Lafuma. Before the initial announcement of the acquisition in May, Lafuma shares were trading for 66.45. Lafuma shares closed on Friday at 72.50, up 2.8% over the previous day and 9.1% over the pre-acquisition price.
