ASX Listed Surf Wear Retailer Billabong To Buy Several Stores From The General Pants Group In Australia
Billabong International Group is to takeover about 38 stores of the General Pants Group. The surf wear retailer, Billabong, said it had reached an agreement for the acquisition of the retail stores. The stores to be acquired include the Surf Drive â€
Online, October 5, 2010 (Newswire.com) - Australia Oct, 5, 2010 Billabong International Group is to takeover about 38 stores of the General Pants Group. The surf wear retailer, Billabong, said it had reached an agreement for the acquisition of the retail stores. The stores to be acquired include the Surf Drive 'n' Ski and Jetty Surf retail banners. Derek O'Neill, chief executive officer of Billabong noted that the acquisition is a combination of two businesses that boast a robust heritage in the surf and wider board sports segment.
He noted further that the firm went into the agreement targeting to preserve the assets as core board sport retail doors and ensuring a route to market for the group's robust portfolio of brands. Even so, the amount involved in the transaction was not readily available, with the two firms sticking to "an undisclosed amount." The deal is inclusive of two Billabong licensed stores and is being touted as geared at reinforcing the firm's retail business in the Australasia expanse.
The Australasia expanse currently delivers Billabong's most robust retail margins. There is good retail experience in the SDS and Jetty Surf businesses and this will complement what is already a strong retail management team in Australia, O'Neill added. He further said that the company planned to retain both banners as multi-branded retailers.
Other than this, the acquisition as well presents a chance for Billabong to greatly enhance its 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. It will also provide the firm with the opportunity to get considerable synergies in areas such as warehousing, distribution, back-office support and overall retail management consolidation.
The deal will close in November and is expected to increase the number of Billabong's doors to 558 in its global retail portfolio. General Pants Group is expected to bring in about 3 per cent of Billabong's revenue in the 2010/2011 fiscal year. Analysts said the acquisition was a good strategic move because Billabong had secured its distribution line in a consolidating market.
Billabong International is a clothing company traded on the Australian Securities Exchange. As well as the Billabong brand-name, the company sells surfwear and accessories under the Palmers Surf, Honolua Surf,Swell.com, Von Zipper, Kustom (footwear), Nixon, Xcel Wetsuits and Tigerlily brands, and also Element skate clothing and hardware. The brands are available at various surf and skateboard stores locations.
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