Surfwear giant Billabong International has acquired Sydney-based retailer Surfection, taking 100 per cent control of the company.
The complete takeover, announced today, was funded through the issue of 1,064,516 new ordinary shares in Billabong International Limited at an issue price of $3.72 per share. The issued shares are subject to voluntary escrow for a period of three years from today.
The Surfection business, founded by retailer Chris Athas, previously operated under a joint venture between the Billabong Group and interests “associated with Athas”, according to a statement by Billabong. The original joint venture with Surfection was announced by Billabong in August 2010.
Athas will remain the manager of the Surfection business as part of a broader role that includes the management of the Billabong Group's Surf Dive 'n' Ski and Jetty Surf retail banners in Australia.
Athas is also currently working on a new venture, with the launch of a Co-Op Surfection store at The Corso, Manly earlier this month.
The fledgling concept, which brings urban and surf brands under one roof, is expected to expand interstate with more retail stores planned.
For more on Co-Op Surfection, pick up a copy of the next Ragtrader print edition, October 7.