After buying Sector 9 Skateboards for undisclosed sum in July of 2008, Billabong has apprently decided that in 2016 they’d rather have US $12 million than continue to operate a longboard company. The company has now sold the business to Bravo Sports, the parent company of Pro Tec, Kryptonics, and Maple.
“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. This transaction is part of that simplification and is consistent with our stated strategy,” said Billabong CEO Neil Fiske.
Yes, Billabong is now running in the opposite direction that they were running in 2008. And they are just as optimistic about selling Sector 9 (for a fraction of what they paid) as they were buying it. Luckily, no one in business remembers the past.
For the official word from Billabong, please follow the jump.
SALE OF SECTOR 9
GOLD COAST, 29 June 2016: Billabong International Limited (“Billabong”, “Company” or, together with its subsidiaries, the “Group”) have entered into an agreement to sell its skate hardware brand Sector 9 for approximately US $12 million to an affiliate of Bravo Sports, a portfolio company of Transom Capital Group.
“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. This transaction is part of that simplification and is consistent with our stated strategy,” said Billabong CEO Neil Fiske.
“Sector 9 is a unique brand in the specialty segment of longboard skate hardware,” said Mr. Fiske. “We are confident the brand will continue to meet the needs of its customers under its new owners.”
California-based Bravo Sports has a number of skate-focused brands within its existing portfolio including Pro Tec, Kryptonics, Ten-Eighty and Maple.
The Group expects the sale of Sector 9 to have minimal impact on overall group EBITDA in FY17.
The San Diego-based brand was founded in 1993 and pioneered the longboard design in skate.
Billabong’s financial advisor in the transaction was Threadstone Advisors and its external legal advisor was Latham & Watkins LLP.
