Volcom, Inc.(NASDAQ:VLCM) shares have been on the rise this morning. Shares of the Surf-inspired clothing firm rose $4.67 to $24.41 a rise of nearly 23.6%. Volume is also on the rise as nearly 3 million shares have been traded, a stark increase from the average daily volume of roughly 80,000 shares.
Volcom’s rise this morning coincides with news that French retailer and luxury goods company PPR intends to buy Volcom for $607.5 million. PPR has tendered an offer of $24.50 per share nearly a 37% premium over the average daily traded price. Some Volcom directors and officers, who own 14.4 percent of the outstanding shares, have already agreed to tender their shares and the company’s board has recommended that other shareholders do the same. The deal is expected to close in the third quarter.
The acquisition gives Volcom the strong sourcing and distribution infrastructure the two key areas that have contributed to Volcom’s poor recent performance.
About Volcom, Inc
Volcom, Inc. designs, markets, and distributes clothing, footwear, accessories, and related products for young men and women primarily under the Volcom brand name in the United States and internationally.