Citing “reservations” over due diligence for competitive reasons, Zumiez has abandoned its pursuit to take over West 49 Inc., leaving the path open for Billabong Int’l Ltd. to continue efforts to buy the Canadian action sports retailer. Recently, Zumiez approached West 49 about a possible acquisition, saying it was prepared to make an offer exceeding the C$1.30 per share Billabong originally offered to pay when Billabong and West 49 agreed to merge last month.
As previously reported, Billabong offered to acquire West 49 for CN$1.30 per share, representing a 136% premium at the time. The total value of the all-cash deal was CN$99.0 million ($94.3 million). The move would lift Billabong's store count from 90 to approximately 230 doors in the North American region.
In its own statement, West 49 said that following receipt of Zumiez's proposal and in accordance with the terms of the existing acquisition agreement between the company and Billabong, the special committee of the board of directors offered to allow Zumiez to review the same information that was made available to Billabong and in the same manner as it was made available to Billabong, subject to Zumiez entering into the form of confidentiality agreement required by the existing acquisition agreement with Billabong.
