Skullcandy Announces Merger with Mill Road
Skullcandy, the Park City, Utah-based headphone and audio accessory brand, announced the termination of a previously announced merger with Incipio LLC, instead opting to enter a new agreement with Mill Road Capital Management LLC. The agreement includes outstanding shares of common Skullcandy stock going for $6.35 per share, making the total approximately $196.6 million, according to Street Insider.
Skullcandy received a written offer from Mill Road on Aug. 17, which it found to be superior to Incipio LLC's proposal. On Aug. 23, Incipio LLC told Skullcandy that it would not submit an amended proposal, so Skullcandy terminated the proposed agreement with Incipio LLC.
"We are extremely pleased with Mill Road's interest in partnering with Skullcandy," Hoby Darling, president and CEO of Skullcandy, told Street Insider. "… We believe Mill Road's experience stewarding branded consumer companies will help accelerate the growth of our Skullcandy and Astro brands. We look forward to accessing the experience, operational expertise and capital that partnering with Mill Road affords as we step up our efforts to excite our consumers and retail partners through our world-class audio and gaming platforms."
"We are excited to welcome Skullcandy and Astro Gaming to our growing portfolio of high quality, distinctively branded companies," Thomas Lynch, founder of Mill Road, told Street Insider. "We have followed Skullcandy for several years, and look forward to working with the company as it takes this important step in its history. We are impressed by how the company has grown and have the highest confidence in the company's future."
For more information on Skullcandy, visit www.skullcandy.com.