Boardriders to sell former Billabong HQ in Burleigh Heads
Written on the 8 November 2018 by Business News Australia
After acquiring Billabong earlier in the year, Boardriders is set to sell the surf brand's iconic head-quarters and lease it back to maintain occupation.
The California-based Boardriders acquired Billabong for around $208 million in April, and now owns a number of Australian surf-brands.
The sale of the Burleigh Heads based Billabong HQ is part of Boardrider's strategy, according to Global President of Boardriders Greg Healy.
"The sale of the property is in line with our strategy to focus on our core business and free up cash to invest in our brands," says Healy.
"Importantly, under the sale and lease back agreement, we will secure Boardriders' long-term occupation of the property."
As reported by the Gold Coast Bulletin, industry insiders are saying Boardriders wants between $45 to $50 million for the property.
Following the acquisition of Billabong in April, Boardriders now owns the Quiksilver, Billabong, Roxy, DC Shoes, RVCA, Element, VonZipper, Xcel, Kuston, and Palmer brands.
The buyout of Billabong marked a light at the end of a very long and dark tunnel for the Australian icon, which had been beset by troubles for the better part of eight years.
Over the three consecutive financial years prior to 2015, Billabong suffered a near death experience when it racked up losses totalling more than $1.3 billion.
Billabong posted a full-year net loss of $77.1 million last year, however it returned to optimism during FY18 when Boardriders revealed its intention to take over the company.
Just prior to the shareholder meeting in March, Billabong and Boardriders entered into an agreement to increase the consideration per share from $1.00 to $1.05 per share.
The agreement was passed by the majority of shareholders with 95.45 per cent voting in favour of the agreement.
Business News Australia
Author: Business News Australia