Surf wear label Billabong International Ltd
(ASX:BBG) has bought a portfolio of Australian retail assets from the General Pants Group.
The 38 retail stores comprise of Surf Dive ‘n’ Ski and Jetty Surf retail banners, along with two licensed Billabong stores.
CEO Derek O’Neill says the acquisition brings together two businesses with a strong heritage in the surf and wider boardsports sector.
On completion of the acquisition, the Billabong group’s global retail portfolio will comprise of approximately 558 doors.
The company says the newly acquired business is expected to contribute around 3 per cent of Billabong Group revenue in the 2010-2011 financial year and be earnings per share neutral in year one.
The purchase price has not been disclosed with the transaction anticipated to be complete on November 1, 2010.
Billabong International reported earnings of $145.16 million in the 2010 financial year.
