Billabong Purchases West 49

30 06 2010

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In rather large news today on the Canadian retail front, surf giant Billabong has secured a deal to buy action sports retailer West 49.

Several online sources confirm that an all cash deal was made to obtain all of the shares in the company at the premium price of $83.2M and is expected to be completed by September.

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What this means for Billabong is greatly increased presence in the market via West 49’s 138 locations, which for the most part are mall based. The company are also rumoured to be in talks with RVCA, but as those negotiations have slowed the move was solidified.

This coming shortly after US action sports kingpin Zumiez has announced plans to crack into the Canadian market. The move will give Billabong a massive footprint in the region, taking them from just over 90 company owned stores to more than 200.

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Acquisition of such a major player in the Canadian game will mean a larger viewing audience for all of the company’s brands Billabong, Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, Nixon, Xcel, Tigerlily, Sector 9 and DaKine. As well as Quiet Flight Surf Shops. In addition, having these locations can only increase Billabong’s ability to market themselves to the unique Canadian scene.

There has been no shortage of shake-ups lately in Canadian action sports retail. It should be fun to see what comes next.

Stay tuned!

Here is the full release

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One response

30 06 2010
bitches

Wow, I hate both these companies so much it hurts!

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