GOLD COAST: Billabong International is set to increase its North American footprint following the acqusition of a Canadian youth sports lifestyle retailer.
The Australian-based company has acquired West 49, one of its existing retail partners in Canada. West 49 operates 138 shopping centre based stores and offers apparel, footwear, accessories and equipment for the sports action market.
The takeover will lift Billabong's own store operations from 90 to 230 doors in the region.
Billabong chief executive officer Derek O’Neill said the move will increase the presence of Billabong’s brands within the Canadian market.
“West 49 is a complementary business and promises to be an ideal Canadian distribution platform for Billabong to showcase its brands and extend its reach to the end consumer,” he said.
Currently across West 49’s stores, Billabong has a brand share of approximately 15 per cent.
The takeover will also increase Billabong’s participation in the distribution channel and provide it with greater influence over the store environment and brand image.
West 49 was founded in 1995 by Sam Baio, the current chief executive officer. He will continue to lead and grow the business. Billabong reported that all employees, along with the current management team, are being retained.
The acquisition will give Billabong an international retail presence of approximately 510 company-owned stores.