Volcom, Inc. intends to directly distribute the company's products in Spain having acquired strategic assets from its current distributor in the region. Terms of the transaction were not disclosed.
“This move enables us to service our accounts directly and further build the Volcom brand in this important and influential territory,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “Historically we have been successful in growing market share in territories where we have assumed direct control, and this initiative directly supports our expansion plans in Europe.”
In Europe, Volcom distributes products directly or in partnership with distributors. In addition to Spain, where the company has had a growing presence since 1997, Volcom has direct operations in France, the United Kingdom, and Switzerland. The company intends to incur some additional expenses as it transitions its operations in Spain to begin shipping directly to retailers starting July 2011. In the current 2010 fourth quarter, the company anticipates additional expenses in Europe of approximately $150,000 related to the transition.
