Skullcandy, Inc. (Nasdaq:SKUL), which creates world-class audio experiences through its Skullcandy® and Astro Gaming® brands, today announced the closing of 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.
Hoby Darling, Skullcandy President and CEO 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. We are confident that our strategic initiatives will excite our fans, benefit our retail partners and continue to provide our team with a great work culture.”
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.
About Skullcandy, Inc.
Skullcandy, Inc. creates world-class audio experiences through its Skullcandy® and Astro Gaming® brands. Founded at the intersection of music, sports, technology and creative culture, the Skullcandy brand creates world-class audio and gaming products for the risk takers, innovators, and pioneers who inspire us all to live life at full volume. From new innovations in the science of sound and human potential, to collaborations with up-and-coming musicians and athletes,Skullcandy lives by its mission to inspire life at full volume through forward-thinking technologies and ideas, and leading edge design and materialization. Astro Gaming creates premium video gaming equipment for professional gamers, leagues, and gaming enthusiasts. Astro Gaming was founded in the pits of competitive gaming and has become synonymous with pinnacle gaming experiences. Skullcandy and Astro Gaming products are sold and distributed through a variety of channels around the world from the company’s global locations in Park City, San Francisco, Tokyo, Zurich,Vancouver and Mexico City, as well as through partners in some of the most important culture, sports, and gaming hubs in the world. The Skullcandy brand website can be found at https://www.skullcandy.com. The Astro Gaming website can be found at https://www.astrogaming.com.
About Mill Road Capital
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 flexible, long-term capital with the ability to purchase shares in the open market, buy large block positions from existing shareholders, provide capital for growth or acquisition opportunities, or execute going-private transactions. The firm has raised approximately $670 million of aggregate equity capital commitments and has offices in Greenwich, CT and the San Francisco Bay Area. More information can be found at https://www.millroadcapital.com.
