Skullcandy Inc. (SKUL), which produces audio and gaming products, closed its merger with an affiliate of Mill Road Capital Management LLC. As a result of the merger, Skullcandy will become a private company and, as of today, its shares of common stock will no longer be publicly traded.
Skullcandy President and CEO Hoby Darling commented, “We are very excited with the outcome of the exploration of strategic alternatives initiated by the Board of Directors. Foremost, we achieved significant value for our former stockholders. In addition, our new ownership structure allows us more flexibility to grow our Skullcandy and Astro brands through product innovation and deep connections to our consumers.”
Thomas Lynch, Mill Road’s founder, stated, “We are excited to welcome Skullcandy to the Mill Road family. The company has done a great job establishing leadership positions for the Skullcandy and Astro Gaming brands and we look forward to working with the teams to capitalize on the many growth opportunities that lie ahead.”
Under the terms of the merger agreement, each of Skullcandy’s shares of common stock has been cancelled and converted into the right to receive $6.35 in cash. Skullcandy’s stockholders of record, as of the effective time of the merger, that are entitled to receive such consideration for their shares will receive a letter of transmittal and instructions on how to surrender their stock certificates in exchange for the merger consideration. Stockholders should wait to receive the letter of transmittal before surrendering their stock certificates.
Peter J. Solomon Company acted as financial advisor and Latham & Watkins LLP acted as legal advisor to Skullcandy. Foley Hoag LLP acted as legal advisor to Mill Road and its affiliates.
Mill Road Capital is a private investment firm focused on investing in and partnering with publicly traded micro-cap companies in the U.S. and Canada. The firm has offices in Greenwich, CT and the San Francisco Bay Area.
