Surf wear company Billabong International Ltd
(ASX:BBG) has come one step closer to acquiring Canadian clothing label West 49, with contender Zumiez Inc pulling out of the running.
The company says it has entered into a definitive acquisition agreement with West 49, one of Billabong’s existing retail partners in Canada.
West 49 has confirmed it will support Billabong’s acquisition of the company for C$1.30 a share. Zumiez decided not to pursue West 49 after both companies could not agree on due diligence conditions.
Billabong hopes the union will boost sales in the North American market, after poor performance contributed to the company’s drop in earnings for the half year.
Billabong International reported a profit of $152.84 million for the year ending 30 June 2009.
