Calida Holding takes majority stake in Lafuma

Calida Holding took control of Lafuma through a reserved capital increase of 35 million euros, subscribed at 14 euros per share for 2,500,000 new shares, which the board approved on 12 November 2013 and the shareholders authorised in December, raising its holding from 15.3% to 50.65%. A simplified tender offer at the same price followed, open from 27 December to 13 January 2014, at the close of which Calida held 59.55% directly and through its French subsidiary, and 59.92% in concert with Felix Sulzberger. A second capital increase of 10 million euros at 9 euros per share, open to all shareholders, completed the arrangement, and the company remained listed on Euronext Paris. Founded in 1930 at Anneyron in the Drôme by three brothers who began by making a folding camping chair, Lafuma designs and sells outdoor clothing, footwear, rucksacks and equipment through a portfolio of brands: Millet for mountaineering, Eider and Killy for skiing, Oxbow for surfing and Lafuma for walking, camping and garden furniture. It employed 1,600 people and recorded revenue of €100–200M for the year to September 2013, against 248.7 million the previous year. The company was in serious difficulty. Revenue had fallen 15.7% in the first quarter of that year, the half-year to March 2013 produced a loss of 60 million euros, the accounts were prepared on a going concern basis dependent on new funds, and a reorganisation announced in June provided for more than 160 redundancies. Recapitalisation rather than acquisition therefore describes what occurred, since the 45 million euros raised across the two increases entered the company to restore its equity rather than reaching the existing shareholders, whose alternative was the failure of the business. Accuracy, appointed as independent expert, found the price of 14 euros equitable, a slight premium to the last quoted price of 13.92 euros and above the average of analysts’ targets, and the board approved the terms without the two directors connected to Calida, the works council having given a favourable opinion.