Billabong buys DaKine for $100M
An Australian surfwear maker announced yesterday that it will acquire DaKine Hawaii Inc., which retails surf, skate, snow and windsurfing accessories, for about $100 million.
BILLABONG INTERNATIONAL LTD.
» Headquartered: Australia
» Founded: 1973
» Founder: Gordon Merchant, a surfer and surfboard shaper
» Financials: Listed on the Australian Stock Exchange
Source: Billabong International Ltd
DAKINE HAWAII INC.
» Headquartered: Hood River, Ore.
» Founded: 1979
» Founder: Rob Kaplan, a Maui resident
» Financials: Privately held
Source: DaKine Hawaii Inc.
The deal is subject to regulatory approvals; however, Billabong International Ltd.
-- considered the largest surfwear maker by market value -- is expected to take over the now Oregon-based DaKine by Oct. 1. The DaKine purchase is expected to increase Billabong's group sales by four percent next year, said Maria Manning, company secretary.
Founded in 1979 in Hawaii by Rob Kaplan, DaKine has developed a reputation in the global action sport's industry as a sought-after provider of specialized backpacks and technical accessories. After the sale, Kaplan will remain a key member of the DaKine management team and will be based in the brand's regional office in Maui.
All members of the current management team are being retained and will continue working along with other employees in the brand's head office in Hood River, Ore., one of North America's premier action sports venues.
"We'll continue seamlessly," said Serene Pelletier, an Oregon-based member of the company's marketing team.
DaKine, with its proven boardsports brand, is expected to add further depth to Billabong, said Derek O'Neill, CEO of Billabong, whose core business is the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods.
Other brands in the Billabong portfolio include: Element, Von Zipper, Honolua Surf Company, Palmers Surf, Nixon, Xcel and Tigerlily.
Billabong shares rose the most in five months in Sydney trading yesterday after posting annual profit that beat analyst estimates.
The company, which has more than 1,750 employees, said its net income rose 5.5 percent to $155 million in the year ended June.
Bloomberg News also contributed to this report.