Billabong enters new sector

NATIONAL: Surf and streetwear giant Billabong has added a new brand to its portfolio. The international manufacturer and retailer has announced the acquisition of 14-year-old Californian skateboard brand Sector 9. The brand is a vertical operator with its primary design, manufacturing and distribution based in San Diego.

Billabong CEO Derek O'Neill said Sector 9 had a unique product offering and was a market leader in the design and manufacture of skate longboards. The bulk of its revenue was generated by skateboard and associated hardgoods sales, with apparel described as a "small but emerging category."

"Sector 9's products, primarily its longboards, really differentiate it from other brands in the boardsports channel and have appeal to surfers, skateboarders and the broader youth market," O'Neill said. 

Sector 9 co-founders and owners Steve Lake and Dennis Telfer and co-owner Dave Klimkiewicz will be retained as part of the acquisition. The purchase also includes the Sector 9's Gullwing skateboard trucks brand.

Sector 9 is expected to contribute approximately two per cent to Billabong's sales in the 2008/09 financial year.