The race to buy Skullcandy has heated up, with a new offer from an investment firm throwing a potential wrench into Incipio’s plans.
Incipio made an offer, which Skullcandy accepted, to buy the company for $5.75 per share. After conducting due diligence, Mill Road Capital made a formal offer yesterday to buy the company for $6.05 per share.
The Skullcandy board determined it was in the best interest of the shareholders to negotiate with Mill Road to see if a superior proposal emerges.
Although Skullcandy already agreed to be acquired by Incipio, there is a clause in the merger agreement that allowed Skullcandy to void the deal if a superior offer was received.
Skullcandy cautioned that while it will continue to negotiate with Mill Road, there is no guarantee an offer superior to that of Incipio’s will emerge.
Incipio owns the Incase, Braven and Tavik brands.
Mill Road began acquiring a large number of Skullcandy shares on the open market on June 13, and owns approximately 9.8% of Skullcandy’s stock, according to SEC filings.
