Billabong to Acquire Skate/Surf Brand RVCA

 

RVCA, based in Costa Mesa, CA, was founded in 2000 and has become one of Southern California's “most exciting emerging” brands, according to Billabong's statement. The company markets itself as an original combination of art, music, fashion and a modern lifestyle. RVCA's Artist Network Program (ANP) showcases both renowned and relatively unknown artists. The brand is also associated with street graffiti culture. The brand sells at local skate/surf shops as well as PacSun, Zumiez, Nordstrom, and The Buckle.

 

“RVCA is not defined by any single sport or culture. It represents a community of culturally aware youth and is inspired by a diverse range of interests, each of which is underpinned by an original, highly creative design element,” said Billabong CEO Derek O'Neill. “It is a brand that has developed a very strong presence in the United States, particularly in Southern California, on the strength of its fashion-forward ranges in categories including  art-driven t-shirts, denim, wovens, boardshorts and-more recently-its girls' line.”

 

The bulk of RVCA's revenue is currently generated in the U.S., while its expansion into other key markets including Australia and Europe is in its infancy. Brand founder Pat Tenore said he and his existing management team will continue to drive the development and growth of the brand.

 

“RVCA's key strength has been its ability to differentiate itself through creative design,” said Tenore. “By joining with Billabong we can retain our focus on our creative strengths, while leveraging the distribution and supply chain infrastructure and support of the Billabong group.”

 

Tenore said he particularly appreciated Billabong's track record of letting acquired brands keep their identity and operate fairly independently.

 

 

“One of the key things about Billabong is its respect for the creative independence of each of its brands and that level of flexibility will allow RVCA to maintain its identity while benefiting from the support of the wider Billabong group,” said Tenore.

 

Billabong North America President Paul Naude added that RVCA has done a great job of building its brand and will now benefit from Billabong's global infrastructure.

 

“There comes a time in the development of a young brand when the administrative side of doing business can start to consume resources that are better applied to the creative development of the brand,” explained Naude. “I think this is one of the strengths of the Billabong group. We have capabilities in areas including sourcing and the management of the supply chain, distribution and general financing and these types of support structures allow our brands to focus on product and marketing.”

 

The RVCA acquisition comes on the heels of the news that Billabong in early July reached an agreement to acquire Canadian action sports retailer West 49 (see below). Billabong also recently acquired five Becker Surf stores and Becker's online operation, and online retailer Swell.com.

 

Billabong's Acquisition Highlights:

2001 – Von Zipper (sunglasses), Element (skate hardgoods, apparel)
2004 – Honolua Surf Company (retail/wholesale), Kustom Footwear, Palmers Surf (surfboard accessories)
2005 – Airport-based retail chain
2006 – Nixon (watches), Beachworks retail
2007 – Xcel (wetsuits), Tigerlily (contemporary apparel)
2008 – Sector 9 (skate longboards), DaKine (backpacks, accessories), Quiet Flight retail
2009 – Swell.com, investment in Surfstitch.com (both online retailers)
2010 – License Plan B (skate hardgoods), Becker Surf retail, bid for West 49 retail, RVCA