You won’t believe how much Oxford Industries, the parent company of Tommy Bahama just paid for Southern Tide. See the article here.
A Character & A Birthright
You won’t believe how much Oxford Industries, the parent company of Tommy Bahama just paid for Southern Tide. See the article here.
Interesting stuff. If I had to guess it traded for at least 10-12x, tough to see it being bought for under ~$70M before even factoring synergies into purchase price multiples.
What I find more remarkable is that Southern Tide is probably one of the larger / well known players in the preppy clothing world — gives you some perspective for how small many of the brands we love (and those featured on your site) are. Good for the little guy
RCS, forgive my ignorance but what does this mean for the brand in terms of merchandising and their future outlook as a brand?
I think he sold low although I’d always err on the side of “take the money”. You’ve got a more broad customer base and I would say more brand recognition than most of these small tech companies that are trading at insane multiples with completely theoretical growth. I would say there are huge growth opportunities in the vein of Vineyard Vines that this brand hasn’t tapped into yet. Outside of pharmaceuticals and energy, the market is prime for picking. But again, take the money.
Just re-read article and totally skipped over the actual purchase price before writing my initial post. Woof – at least the weekend is near
Yea, pretty sure some one at Oxford Industires just won the deal of the decade. While having not done a financial statement review, the numbers quoted make the bid price look like finding Masters memorabilia at Goodwill. My guess is this will be a great thing for the brand, a Tommy Bahama & Southern Tide brick and mortar on 30A or in Charleston would be a license to print money and they would definitely get their fair share of mine.
Correction, the deal of the decade was the guy at Under Armour that signed unknown golfer Jordan Speith. This is now #2.