Billabong Buys Canadian Retailer
Surf label Billabong International Ltd. announced June 30 that it would purchase its Canadian retail partner, West 49 Inc.
Billabong closed the deal at $99 million (Canadian) for West 49 Inc.’s 138 boutiques. The Burlington, Ontario–based chain maintains a fleet of stores under several nameplates, which include West 49, D-Tox, Amnesia/Arsenic, Off The Wall and Billabong. The deal will increase the availability and the penetration of Billabong brands in Canada and also will increase the opportunity to expand West 49, according to a Billabong statement.
West 49 will remain a multi-brand retailer. The store’s core management, including Chief Executive Sam Baio, will remain in their positions, the statement said. West 49’s board of directors unanimously approved the acquisition, and the sale is expected to be completed in September.
The West 49 Inc. acquisition is just the latest in a buying spree by Billabong, an Australian company that maintains an American division, Billabong North America, which is based in Irvine, Calif.
In May, Billabong acquired Becker Surf & Sport, a core-surf boutique chain based in Hermosa Beach, Calif. In November 2009, it acquired San Clemente, Calif.–based e-commerce boutique Swell (www.swell.com). In 2008, the company purchased East Coast surf retailer Quiet Flight. It also owns surf and skate brands Plan B, Element, Custom, Nixon, Da Kine, Xcel and Honolua Surf Co. The company is also widely rumored to be wrapping up a deal to purchase the influential Costa Mesa, Calif.–based fashion label RVCA, although a Billabong representative did not respond to a request for comment on the matter.—Andrew Asch
