GOLD COAST: After a spate of acquisitions in the north American market, Billabong has pounced on assets owned by Australia's General Pants Group.
The international surfwear giant announced it has reached a conditional agreement to acquire the Surf Dive 'n' Ski and Jetty Surf retail banners from General Pants Group.
The deal is expected to be completed by November 1, 2010, and will involve Billabong's acquisition of 38 retail stores, including two licensed Billabong stores. The deal will bring Billabong's international door count to 558.
Billabong CEO Derek O'Neill said the deal would strengthen Billabong's retail business in Australasia.
“We entered acquisition discussions with the view to preserving the assets as core boardsport retail doors and ensuring a route to market for the Group's strong portfolio of brands,” O'Neill said.
“The acquisition presents the opportunity to extract significant synergies in areas including warehousing, distribution, back-office support and overall retail management consolidation.
“Additionally, direct retail operations greatly enhance Billabong's visibility into the buying trends of the end consumer and assist in the speedy development and delivery of on-trend product to both company-owned and independent retail accounts.”
The assets are expected to contribute approximately three per cent of Billabong Group's revenue in 2010/11. Billabong did not reveal the purchase price of the deal.
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.