Billabong has completed an agreement to acquire the retail operations of Quiet Flight, an East Coast retailer and the operator of 13 stores, including the flagship Billabong and Element retail stores in New York. Quiet Flights retail management team is being retained as part of the transaction. Terms of the deal were not disclosed, but Billabong expects Quiet Flight to contribute approximately 3% of overall Group sales for the 2008-09 financial year and to be EPS accretive in its first full year within the Group.
“Quiet Flights founder, Ed Leasure, opened his first surf shop at Cocoa Beach in Florida in 1972 and he has been doing business with Billabong over several decades,” said CEO Derek ONeill.
“Ed has been a great support to our US east coast business and we cemented our relationship with him in 2005 when he opened a licensed Billabong store and a neighbouring Element store in the middle of Times Square, New York.
“Through that partnership we have strengthened our business relationship and gained a shared understanding of the value in working together.”
Ed Leasure, Quiet Flights president, said the sale allowed him to formalise a growing relationship with the Billabong Group.
“Ive been working so closely with Billabong in recent years, particularly through the New York flagship stores, and this further formalizes the association,” said Leasure.
“Ive been involved in surf retailing for a very long time and seen the industry grow. I feel there are still tremendous opportunities to be realised by continuing to work together with the Billabong Group.”
Quiet Flight operates under a number of multi-branded retail banners in Florida, including Quiet Flight stores in Universal Studios, New Symrna, Tampa and Cocoa Beach, and Surf Warehouse stores in Orlando.
The business also operates the Billabong and Element stores in Times Square, New York, as well as a recently opened Billabong/Element store in nearby Herald Square, New York.
