Wiggle CRC bought by Frasers Group for 10 million pounds
Essentially a bankruptcy (or "administration" in UK speak) fire sale:
https://www.pinkbike.com/news/wiggle...0-million.html Deal includes the IP, so all the in-house brands are going with it - Nukeproof, Vitus, etc. I'm most bummed about Nukeproof as they make my favorite flat pedals, and the mountain bikes are pretty good too. Totally unclear what the future of the brands will be. I believe the original purchase by Signa in 2021 was for $645 million, mostly debt-financed. Said debt is presumably what led to falling into administration. |
Interesting. I hope they do something with the brand, that includes shipping to the US. Sad to see a longstanding player tumble. Let's see what happens next I guess.
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There is a lot of shame here to go around for such a crappy deal. Citi and Jeffries for being the deal advisors. Moelis for giving the fairness opinion. PIF and Softbank at the two largest pipe investors (but in fairness Softbank has a crappy record of hubris around this time.) SPACs were responsible for more sham listings at this time. A proverbial gold rush of grifters. And of course, CNBC was right there hyping the trend. I remember an interview Chamath P (Spac Jesus) gave around this time about his selling of shares of Virgin Galactic. I couldn't believe he could keep a straight face for the false narrative he was telling. As bad as Signa was, I don't even think this qualifies as the worst SPAC deal of all. It was another huge failing by the SEC and the exchanges. |
I wouldn't touch a SPAC with Sauron's ten foot pole.
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https://www.linkedin.com/pulse/postm...b-dudek-xau9f/ Worth a read. |
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The SPAC deal incurred $42mm in fees, plus they paid deferred commission to the broker responsible for the original SPAC listing for Yucaipa of $9mm. SSU the public listing did not have any debt until it took out a revolver from LBBW on 5/22 for 100mm EUR for working capital. It was secured with a floating rate of EURIBOR + 350 You can see from the fees generated that it was a really good business for the banks and brokers. Which is why SPACs were so popular with banks. But as the linkedIn post states, 95% of spacs lost money. |
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