Last week Volcom spread its anti-establishment wings a flight further by acquiring sunglass manufacturer, Electric Visual in a deal which requires Volcom to pay Electric shareholders $25.25 million cash. Both companies broadcast a similar appeal, but why and how did this exchange come about? SurferMag.com caught up with the big mover himself, Richard Woolcott, to get the details.
What precipitated this purchase? Was it planned?
Electric is a company that we have always felt would be a good fit for Volcom when the time was right. When Electric approached us that they were interested in looking for a strategic partner, we rolled up our sleeves and went to work. We believed we were the right company for them and fortunately everything worked out for both of us.
How will it affect the operations at both Volcom and Electric?
Electric will remain operating on its own, and we will help out where needed. It’s basically business as usual.
Could you speak at all to the recession the Surf Industry is currently facing? Why do you think surf stocks have been plummeting as of late? And could transactions of this nature return surf companies to an upward trend?
Times are tough right now for everyone but we have a great industry. I know that many of us will buckle down, work hard, and weather the storm. Things will turn around at some point, and hopefully it will be six-foot and glassy once again.