DaKine Aquired by Billabong

Pete · Since 29 Oct 2007 843 Posts Opinionated

Billabong to Acquire Dakine
August 21, 2008
PRESS RELEASE

GOLD COAST, 22 August 2008: Billabong International Limited today announced it has entered into an agreement to acquire the business of DaKine Hawaii, Inc., a leader in the premium accessories category within the surf, skate, snow and windsurf markets.

DaKine was founded in 1979 in Hawaii by Rob Kaplan and is currently based in Hood River, Oregon, one of the premier action sports venues in North America. The brand has developed a strong reputation as the global action sports industry's leading provider of specialized backpacks and technical accessories with an excellent historical growth profile.

Billabong International Limited chief executive officer Derek O'Neill said the inclusion of a complementary, authentic and internationally proven boardsports brand added further depth to the Group.

"DaKine is well established within the boardsports sector and it is a brand that has built its reputation on the quality and reliability of its technical range," said Mr. O'Neill.

"It has built a strong sales base in North America and a growing sales base in several international territories, making it a powerful addition to the Group."

Billabong North America President Paul Naude' said DaKine had particular strength in the ocean boardsports sector and had a 20-year history in the snow category with a strong offering in backpacks, bags, gloves and accessories.

"DaKine is a brand that leads the boardsports backpack category, excels in the surf accessories market in the ultimate testing ground of Hawaii and has excellent penetration in winter product categories including snow gloves," said Mr. Naude'.

"It is a brand that is focused on function over fashion and this, together with a strong team of athletes and compelling marketing campaigns, has endeared it to active boardsports participants."

DaKine founder Rob Kaplan said the sale presented synergies for both businesses and he welcomed the additional infrastructure Billabong offered to support future growth.

"Billabong and DaKine have both determined that each of us has complementary skills and strengths and together we have a compelling authentic offer," said Mr. Kaplan.

Rob Kaplan will remain integrally involved as a key member of the DaKine management team and will be based in the brand's regional office in Maui, Hawaii. All employees, along with the current management team, are being retained and will remain in the brand's head office in Oregon.

DaKine is expected to contribute approximately 4% of Billabong International Limited's Group sales in the 2008-09 financial year and is expected to be earnings per share positive in year one.

pacspeed · Since 13 Jul 2008 16 Posts

Sure hope they stay in Hood River long term. The article says the location wont change, but they ALWAYS say that during a merger. Whether they stay a year or two from now is the kicker.

After all, I'd hate to have start paying <gasp> retail for Dakine stuff.

pkh · Since 27 Feb 2005 6549 Posts Couve / Hood Honored Founder

Yeah here's hoping they stick around in HR.

dangerD · Since 27 Jun 2005 223 Posts Bingen Heights Stoked

Great. Its all downhill from here. Move the factory overseas. Lower quality to increase profits..
god bless amerika

DROCK999 · Since 31 May 2007 852 Posts Left Coast Opinionated

stringy · Since 23 Jun 2006 1734 Posts vancouver XTreme Poster