International giant conquers South African break

Surfwear brand Billabong International has acquired back the license to its South African operations.
The Australian headquartered group originally granted licensing rights to South African-based entrepreneur Cheron Kraak 23 years ago but bought them back earlier this month - two years before Kraak's license was due to expire.
The takeover includes Billabong South Africa's wholesale distribution channel through the South African, Mauritius,

Reunion, Botswana and Kenyan markets as well as stock.
While it would not confirm the value of sale, the Australian Stock Exchange listed company has denied South African media reports that suggest the deal was worth an estimated R350 million ($A57.4 million).

The move is the brand's second major purchase in the past eight months following its acquisition of New Zealand surf retailer Amazon in November.

A Billabong spokesman said the sale, finalised earlier this month, came about after Billabong and Kraak began discussing the long-term future of the brand in South Africa.

For her part, Charron told media she had known for "years" that Billabong International - whose products are sold in more than 100 countries worldwide - would eventually want to buy back the licence.

"They have bought back most of the territories worldwide and, being a public brand, they grow. It is going to be good for the brand because they can grow retail," she told South Africa's Weekend Post.

It is expected the South African business will contribute approximately 2 per cent of the Billabong group's projected full year revenue in the 2007/08 financial year.

It is understood Kraak will remain at the helm of the company and all 385 employees at the company will be offered jobs in the business. The Billabong spokesman confirmed there would be no redundancies as a result of the move.
More details about the company's growth plans are expected to be announced during the release of its full year results on August 24.

ByTracey McEldowney