GOLD COAST, 22 August 2008: Billabong International
Limited today announced it has entered into an agreement to
acquire the business of DaKine Hawaii, Inc., a leader in the
premium accessories category within the surf, skate, snow and
windsurf markets.
DaKine was founded in 1979 in Hawaii
by Rob Kaplan and is currently based in Hood River, Oregon,
one of the premier action sports venues in North America.
The brand has developed a strong reputation as the global
action sports industry’s leading provider of specialized
backpacks and technical accessories with an excellent
historical growth profile.
Billabong International
Limited chief executive officer Derek O’Neill said the
inclusion of a complementary, authentic and internationally
proven boardsports brand added further depth to the Group.
“DaKine is well established within the boardsports sector
and it is a brand that has built its reputation on the quality
and reliability of its technical range,” said Mr. O’Neill.
“It has built a strong sales base in North America and a
growing sales base in several international territories,
making it a powerful addition to the Group.”
Billabong
North America President Paul Naude’ said DaKine had particular
strength in the ocean boardsports sector and had a 20-year
history in the snow category with a strong offering in
backpacks, bags, gloves and accessories.
“DaKine is a
brand that leads the boardsports backpack category, excels in
the surf accessories market in the ultimate testing ground of
Hawaii and has excellent penetration in winter product
categories including snow gloves,” said Mr. Naude’.
“It
is a brand that is focused on function over fashion and this,
together with a strong team of athletes and compelling
marketing campaigns, has endeared it to active boardsports
participants.”
DaKine founder Rob Kaplan said the sale
presented synergies for both businesses and he welcomed the
additional infrastructure Billabong offered to support future
growth.
“Billabong and DaKine have both determined that
each of us has complementary skills and strengths and together
we have a compelling authentic offer,” said Mr. Kaplan.
Rob Kaplan will remain integrally involved as a key member
of the DaKine management team and will be based in the brand’s
regional office in Maui, Hawaii. All employees, along
with the current management team, are being retained and will
remain in the brand’s head office in Oregon.
DaKine is
expected to contribute approximately 4% of Billabong
International Limited’s Group sales in the 2008-09 financial
year and is expected to be earnings per share positive in year
one.
