Marking its fifth acquisition in the past five years, Billabong International Ltd. reached an agreement to buy surf accessories maker DaKine Hawaii Inc. for as much as $133 million. The DaKine purchase will add accessories such as surfboard bags and snowboarding gloves to Billabong’s product range while increasing sales by about 4%. The company also owns Element and Sector 9.
DaKine was founded in 1979 in
Billabong International Limited chief executive officer Derek ONeill 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. ONeill.
“It has built a strong sales base in
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.”
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.
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
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.