GOLD COAST: Billabong has entered into a joint venture with one Australian surfwear retail business so far this financial year, and is now set to acquire another.
The publicly listed surfwear company revealed it has reached a conditional agreement to acquire the 36-door Rush Surf retail chain. One of Billabong Group's largest Australian customers, Rush operates largely in Queensland with additional stores in New South Wales and the Northern Territory.
“Billabong plans to retain the business as a multi-branded retailer and it will continue to be operated by its founder, Wades James,” Billabong said.
“It is anticipated the purchase will complete in October 2010 and will be earnings per share positive in year one.”
Rush Surf is the second investment Billabong has made in the Australian retail market since the 2009/10 financial year began. The company revealed in its annual results presentation on August 20 it had also entered into a joint venture with the two-store Surfection retail business in Sydney.
“Surfection will continue to be run by its principal, Chris Athas, and he will drive a planned expansion of the banner,” Billabong said.
The company revealed other impending store openings include a Billabong concept store in Sydney's CBD and a 500 square-metre multi-branded store next to Billabong's Gold Coast head office.
Billabong International oversees both wholesale and retail operations for brands including Billabong, Element, Von Zipper and Tigerlily. The company trades in Australia and New Zealand as well as the Americas, UK, Europe and Asia.