HUNTINGTON BEACH, Calif.: Boardriders, Inc., a global action sports and lifestyle company that owns and operates the Quiksilver, Roxy, and DC Shoes brands, has signed a definitive agreement to acquire all of the shares of iconic Australian surfing label Billabong International Limited for $208 million.
The combination of Boardriders and Billabong will create the world’s leading action sports company with sales to over 7,000 wholesale customers in more than 110 countries, owned e-commerce capabilities in 35 countries, and over 630 retail stores in 28 countries.
The combined company will see brands such as Billabong, RVCA, Element, VonZipper, and Xcel added to the Boardriders family of brands.
Under the ownership of funds managed by Oaktree Capital Management, L.P., Boardriders has dramatically improved its operational and financial performance since its turnaround began in February, 2016.
The company rationalized its distribution, right-sized its cost structure, rewired its product development platform, and invested in a range of growth-enhancing brand, marketing and e-commerce initiatives. The successful turnaround of the company and reconfiguration of the Boardriders platform has created the opportunity to bring the Billabong brands onto the same back-office operating platform to accelerate their growth as well.
Upon closing of the transaction, Dave Tanner, currently managing director at Oaktree and chief turnaround officer for Boardriders, will become chief executive officer of Boardriders. Pierre Agnes, currently chief executive officer of Boardriders, will become president of Boardriders, remain a board member, and lead a substantial portion of the integration of the two companies.
Tanner said: “The combination of these two leading action sports companies, which include a broad range of iconic brands with deep heritage in surf, snow and skate, is very exciting for all of us who share a passion for outdoor action sports. We are committed to preserving the autonomy, creativity, and unique cultures of all the brands while we leverage our best-in-class operating platform to accelerate the growth of the brands globally. We are excited to become one family with the Billabong team, and look forward to working together arm-in-arm to achieve the promise that this combination offers.”
Agnes added: “Creating one integrated global platform will enable the combined company to enhance its investments in product innovation and quality, digital marketing, consumer engagement, and e-commerce, which ultimately will benefit our consumers and strengthen the company and industry. With a larger and stronger platform, we see many exciting opportunities for our employees, customers, suppliers, and athletes. I am excited and honored to pass the leadership baton to Dave and to continue to partner with him to drive the next phase in the evolution of Boardriders.”
Regarding a potential future role for Neil Fiske, current CEO of the Billabong Group, Matt Wilson, Boardriders chairman and managing director and co-portfolio manager at Oaktree, stated: “We have high regard for Neil and what he has accomplished over the years. I personally have valued his keen strategic thinking and leadership. I very much hope that he will join us for the next leg of this journey and continue his contribution to these great brand.”
The acquisition is subject to a number of customary closing conditions, including shareholder, court and regulatory approvals. The transaction is expected to close in the first half of 2018.
