Now that the complete take over of Billabong is off the table analysts are going over what they think the pieces of Billabong are worth.
Citi’s Craig Woolford, believes RVCA and Dakine could be sold for $110 million combined, according to a story in The Australian.
Billabong bought RVCA, which founder Pat Tenore established in 2001 in his garage, in 2010 for an undisclosed amount, saying it would contribute 2 per cent of the retailer’s total revenue. RVCA’s brand advocates include jiu-jitsu athletes like Rafa Mendes, musician Josh Harmony, surfer Christian Fletcher and skateboarder Mark Suciu. . . Billabong bought DaKine in 2008, 29 years after it was founded in Hawaii, for $US100m. It sponsors athletes in skiing, surfing, skating, windsurfing, kiteboarding and mountain biking.
It wouldn’t pay off Billabong’s $279 million debt, but it would be a step in the right direction. And when you think about it. Why buy all of Billabong’s debt when you can just scoop up a few of their better brands for next to nothing? Anyone have $110 million lying around? Hey, maybe Chip Wilson can help. . .
[Link: The Australian]
Comments on this entry are closed.