BILLABONG OFFLOADS SKATE BRAND FOR $16M

BILLABONG OFFLOADS SKATE BRAND FOR $16M

BILLABONG (ASX:BBG) is set to sell its skate hardware brand Sector 9, stating the company wants to focus all of its attention on its three key global brands.

The Gold Coast-headquartered company has entered into an agreement to sell Sector 9 for about US$12 million or AU$16 million to an affiliate of Bravo Sports.

"Our priority as a company has been lifting the performance of our three biggest global brands in Billabong, RVCA and Element, while simplifying the business wherever possible," says Billabong CEO Neil Fiske.

"This transaction is part of that simplification and is consistent with our stated strategy."

Billabong says the sale will have minimal impact on overall group EBITDA (earnings before interest, tax, depreciation and amortisation) in FY17.

Sector 9 is a San Diego-based brand founded in 1993 and pioneered the longboard design in skate.

"Sector 9 is a unique brand in the speciality segment of longboard skate hardware," says Fiske.  "We are confident the brand will continue to meet the needs of its customers under its new owners."

Billabong recorded a loss in the first half of FY16, reporting a slim $1.6 million deficit.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Logan edtech Go1 hits unicorn status as valuation exceeds $1 billion

Logan edtech Go1 hits unicorn status as valuation exceeds $1 billion

Logan, QLD-based education technology company Go1 has been on a r...

Lendlease, IKEA join forces to help QLD women and children escaping family and domestic violence

Lendlease, IKEA join forces to help QLD women and children escaping family and domestic violence

Amidst an acute shortage of housing options for women and childre...

New community case for Brisbane, QLD will open doors to all of Victoria

New community case for Brisbane, QLD will open doors to all of Victoria

A gentleman in his 60s who attended a Portuguese restaurant in Br...

Soul Patts, Milton Corp plan $10.6 billion merger

Soul Patts, Milton Corp plan $10.6 billion merger

Two Sydney-based investment houses with more than 230 years in op...