BILLABONG OFFLOADS SKATE BRAND FOR $16M
Written on the 29 June 2016
BILLABONG (ASX:BBG) is set to sell its skate hardware brand Sector 9, stating the company wants to focus all of its attention on its three key global brands.
The Gold Coast-headquartered company has entered into an agreement to sell Sector 9 for about US$12 million or AU$16 million to an affiliate of Bravo Sports.
"Our priority as a company has been lifting the performance of our three biggest global brands in Billabong, RVCA and Element, while simplifying the business wherever possible," says Billabong CEO Neil Fiske.
"This transaction is part of that simplification and is consistent with our stated strategy."
Billabong says the sale will have minimal impact on overall group EBITDA (earnings before interest, tax, depreciation and amortisation) in FY17.
Sector 9 is a San Diego-based brand founded in 1993 and pioneered the longboard design in skate.
"Sector 9 is a unique brand in the speciality segment of longboard skate hardware," says Fiske. "We are confident the brand will continue to meet the needs of its customers under its new owners."
Billabong recorded a loss in the first half of FY16, reporting a slim $1.6 million deficit.