Billabong International to acquire 100% of youth-focussed brand Nixon Inc.
27 Dec '05
2 min read
Australian surfwear retailer Billabong International Ltd is planning to make stronger its position in the boardsports accessories market with the acquirement of US watch and accessories youth brand Nixon Inc.
The Burleigh Heads-based company stated it agreed to purchase 100 percent of Nixon for AUD73 million (€45.1 m) plus a future AUD24 million payment will depend on company's future performance.
Andy Laats and Chad DiNenna, who are the founder's of Nixon, will remain with the company in the roles of president and global marketing chief respectively.
The California-based Nixon is anticipated to add 5 to 6 percent of Billabong's group sales in the year ending June 2006.
Chief Executive Officer Derek O'Neill of Billabong said, "We see the brand's inclusion in our group as a great opportunity as it gives us a firm foothold in a growth category in which we were under-represented."
Presently, the company is looking for the expansion drive with Nixon's reach in Australia and worldwide. It is present in 30 countries compared with the 100 countries Billabong operates in.
Recently, Billabong bought into Beachculture, the Australian boardwear company operating stores at airports in Australia. As part of a newly formed joint venture, it may think about to open stores at international airports.
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