A bidding war to buy Skullcandy appears to be unfolding with an investment firm submitting a new unsolicited offer that is above previous bidder Incipio.
Incipio, which also owns industry brands Incase and Tavik, has said it would acquire the company for $5.75 per share, while investment firm Mill Road has offered $6.05 per share.
Skullcandy’s stock rose more than 5% in trading this morning to $6.08.
Mill Road disclosed Friday that it has acquired 9.8% of Skullcandy’s stock on the open market. Mill Road began acquiring a large number of shares on June 13, according to SEC filings.
Adding further to the intrigue is the fact that Founder and Board Member Rick Alden had been exploring buying the company and taking it private.
Rick owns roughly 15% of the company’s stock and is the largest Skullcandy shareholder via a trust and personal ownership.
In its offer for the company, Mill Road said it was open to working with other shareholders or entities in an attempt to buy Skullcandy.
In Skullcandy’s merger agreement with Incipio there is a “go shop” period until July 23 where Skullcandy’s investment bankers look for alternative proposals.
In a statement this morning, Skullcandy said:
“Consistent with the terms of the merger agreement with Incipio and its fiduciary duties, Skullcandy’s board of directors, in consultation with its financial and legal advisors, will carefully review and consider the Mill Road Capital proposal to determine the course of action that it believes is in the best interest of the Company and its stockholders.
“Additionally, pursuant to the merger agreement, Skullcandy will continue its efforts during the ‘go-shop’ period to elicit alternative proposals from third parties.
“There can be no assurance that the proposal or discussions with Mill Road Capital, or any other third party, will result in in a superior transaction to the merger agreement entered into with Incipio.”
