Billabong to acquire West 49
Billabong has entered into a definitive acquisition agreement with West 49 which will allow Billabong to acquire West 49 for C$1.30 ($1.23) per share, for an enterprise value of approximately C$99.0 million. The acquisition is expected to take effect in the financial year 2011.
West 49 is a Canada-based specialty retailer of apparel, footwear, accessories and equipment focused on the youth action sports lifestyle. It was founded in 1995 by Sam Baio, the current chief executive officer, and is headquartered in Burlington. The company has 138 primarily mall-based stores in nine provinces across Canada.
The acquisition will increase Billabong’s existing North American retail network, lifting its store count from 90 to approximately 230 doors and gives Billabong a global retail presence of approximately 510 company-owned stores.
Billabong North America general manager, Paul Naude, said: “We already have a good understanding of each other’s business and we have worked closely together to develop the Billabong Canada retail stores. Culturally we are a great fit and the fact that we already have a close relationship with West 49 means that the transaction makes even more sense.”
