Firms: Herbert Smith Freehills (SurfStitch Group Limited); Sparke Helmore (SHI Holdings Pty Limited); Baker & McKenzie (JP Morgan Australia Limited and UBS Australia Branch)
Deal: Surfstitch Group Limited acquired SHI Holdings Pty Limited and made an institutional placement of shares
Value: $23.7 million acquisition and $50 million placement
Area: M&A and finance
Key players: The Herbert Smith Freehills team advising on the acquisition was led by partner Bradley Russell with assistance from solicitor Jacqueline Pollard. Partner Philip Hart (pictured) and solicitor Thomas Mawson advised on the placement of shares.
Deal significance: Global online action sports and youth culture network SurfStitch Group Limited (SurfStitch) acquired global designer and distributor of water board sports products Surf Hardware International Holdings Pty Limited (SHI).
SurfStitch purchased 100 per cent of the shares of SHI for an enterprise value of A$23.7 million, paid in cash and completed on 3 December.
SurfStitch also launched a $50 million institutional placement of shares on 25 November, fully underwritten by JP Morgan and UBS.
Part of the proceeds from the placement will be used to provide SurfStitch with the flexibility to pursue further strategic growth initiatives including complementary acquisition opportunities, according to a release from Herbert Smith Freehills.
HSF partner Philip Hart said: “We are pleased to have worked with the SurfStitch team on this important placement, having also acted on the company’s initial public offering and listing on ASX, and its recent $42.5 million institutional placement and share purchase plan to fund its acquisitions of Magicseaweed and Rollingyouth.”
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