Home / Knowledge / News / Fashion / West 49 expands retail network by two strategic businesses acquisition

West 49 expands retail network by two strategic businesses acquisition

30
Sep '05
Action sport retailer West 49 Inc announced it has entered into a definitive agreement to purchase a retail chain of 24 Quebec based specialty stores operating under the banners Arsenic, Amnesia, and D-Tox from Modes Freedom Inc.

At the same time, the company announced it has entered into a separate definitive agreement to purchase Board Zone Inc, an on-line action sports retailer operating under the domain name Boardzone.com. Both transactions are expected to close in November 2005.

Sam Baio, President and CEO of West 49 Inc stated that these acquisitions further support our vision to build the dominant Canadian retailer in action sports apparel through the further expansion of our national presence and the establishment of multi-channel distribution.

The addition of 24 recognized retail outlets to their growing chain of specialty stores will provide an expanded platform to truly nationalize their strong brands while providing an entry point into the large Quebec marketplace. The acquisition of Board Zone will expand their distribution to include online sales, a significant channel considering that their target market is spending more time researching and buying product on the internet.

Under the terms of the agreement to acquire the retail assets from Modes Freedom Inc., the Company has agreed to pay $7.5 million in cash and 1.1 million in West 49 common shares vesting over the next 3 years. This represents a total purchase price of approximately $9.37 million. Additionally, the Company intends to invest up to $1.5 million in inventory and working capital. The management of West 49 estimates the 24 store chain to have annualized revenue of $17.5 million and operating income(xx) of $1.7 million.


Must ReadView All

Pic: Lund University

Textiles | On 8th Mar 2021

Swedish scientists convert cotton into sugar, to make textiles

In a major step towards recycling, scientists at Sweden’s Lund...

Pic: Hohenstein

Textiles | On 8th Mar 2021

German testing company able to screen entire textile chain for GMOs

The textile testing service provider Hohenstein has developed its own ...

Pic: Shutterstock

Textiles | On 6th Mar 2021

USTR releases 2021 President’s Trade Agenda, 2020 Annual Report

The Office of the United States Trade Representative recently...

Interviews View All

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Cindy McNaull, Cordura

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Michael Van Den Dolder,

Michael Van Den Dolder

Family-owned German textile machinery manufacturer Trützschler operates...

Mario Ploner,

Mario Ploner

<div>Italian company Tecnomeccanica Biellese specialises in planning and...

Spring Chang,

Spring Chang

A specialist in manufacturing printing machines, <b>Wenzhou Changs</b>...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


March 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search