ASR Parent Company on the Block
The financial community has been abuzz since Dutch media conglomerate VNU accepted a takeover bid from a group of private equity firms on March 8. Valued at $9 billion to $10.3 billion, the deal could affect a variety of the company’s high-visibility properties, including the ACNielsen consumer tracking service, the Nielsen TV ratings service and a variety of magazines, including Adweek, The Hollywood Reporter and Billboard.
It could be a couple months until investors, shareholders and industry watchers learn the fate of VNU. The deal, which was accepted by the board, could be derailed if at least 95 percent of shareholders don’t approve. So far, two major shareholders have vowed to stymie the bid.
According to reports, the company will not be broken up and sold in pieces for 18 months if the deal goes through. After that, some sources say VNU’s divisions will probably be divvied up and sold off.
Closer to home, the boardsports industry might be drawn into the fray. The Action Sports Retailer Trade Expo is part of VNU’s Business Media segment. The division, which brought in an estimated $169.6 million in sales in 2004, is home to more than 50 publications and the VNU Expositions subsidiary, which produces 56 trade shows and conferences annually.
VNU Expositions officials don’t anticipate adverse effects if the sale is realized. “We wouldn’t expect any negative effect or impact at all on ASR or any of our individual trade show brands if a sale of VNU is to occur,” said David Loechner, sports group president of VNU Expositions. “In fact, if a sale of VNU were to occur to the private equity market it would represent a significant endorsement to the fundamental strengths of all the VNU brands and would likely provide additional resources to even better serve our customers long term,” he said.
Now in its 25th year, ASR is gearing up to launch a new show, ASR Holiday, May 31–June 1 in Newport Beach, Calif. With the fourth quarter becoming increasingly more important to retailers and brands, the show is a place for buyers to get a jump on their Holiday purchases. The casual two-day event is 90 percent sold out, with brands like Billabong, Hurley, O’Neill, Lost and Cult already represented.
SIMA Announces Image Award Nominees
For the fourth year in a row, the Surf Industry Manufacturers Association will honor manufacturers, brands and retailers in eight categories with Image Awards. “The nominees and winners are selected by their peers, so all of the companies nominated should be stoked that their friends and competitors in the industry hold them in such high regard,” said Dick Baker, president of SIMA and of Ocean Pacific.
Billabong, Quiksilver,RVCA, Vans and Volcom are nominated for Men’s Brand of the Year, a new category for brands that best grew their business in 2005. Billabong Girls, Nikita Clothing, O’Neill Girls, Roxy and Volcom Girls are nominated for Women’s Brand of the Year. Electric Visual, Insight, Mada, Matix and Vestal Watch are nominated for Breakthrough Brand of the Year. Product Innovation of the Year nominees are Aviso Carbon Fiber Hollow Surfboard, Freestyle Audio Waterproof MP3 Player, LokBox Turbo Speed Dialer Fin System, Firewire Superflex Surfboard and the Quiksilver Deep Tide Watch. Billabong, Hurley, Reef, Vans and Volcom are nominated for Ad Campaign of the Year. Channel Islands, Lost, Firewire, Rusty and Surftech will compete for the Board Builder of the Year award. The nominees for Retailer of the Year are 17th Street Surf Shop, Hansen Surfboards, Jack’s Surfboards, Town & Country and Whalebone Surf Shop. Billabong, Quiksilver, Sole Technology, Surftech and Volcom will vie for the coveted Manufacturer of the Year award.
Ballots will be sent to SIMA members and retailers later this month and are due back on April 21 to be counted. The awards ceremony, which Baker promises will be bigger and better, will take place during SIMA’s Surf Summit 9 in Cabo San Lucas, Mexico, May 18–21.
