Beachwear buyout: Quiksilver is merging with Billabong

Two of the world's best known beachwear brands are about to hit the surf together.The owner of Quiksilver is b...

Posted: Jan 5, 2018 1:37 PM
Updated: Jan 5, 2018 1:37 PM

Two of the world's best known beachwear brands are about to hit the surf together.

The owner of Quiksilver is buying rival brand Billabong, the companies said Friday. The deal values Billabong at roughly $380 million Australian dollars ($300 million) including debt.

It brings together two sportswear brands that started out in Australia more than 40 years ago and used surf culture to sell clothing around the world. Their popularity peaked in the 1990s, when their board shorts were a common sight on beaches from Bondi to Hawaii.

But they both ran into trouble more recently with sinking sales and profits. In 2013, Billabong declared its own brand worthless after posting a huge annual loss. And Quiksilver filed for bankruptcy in 2015.

Related: Retail bloodbath: Bankruptcy filings pile up

It was bailed out by Oaktree Capital Management, a Los Angeles-based investment firm that specializes in buying companies in financial difficulties and turning them around.

Now, Oaktree is adding Billabong to its roster, too.

The combined surfwear company will have more than 600 retail stores in 28 countries, Quiksilver said in a statement.

Related: Retail's toughest year: A record for store closings

Billabong will be delisted from Australia's ASX stock exchange after the merger. Its shares rose more than 2% in Sydney following the announcement.

Oaktree didn't immediately respond to a request for further information on its future plans for the merged brands.

Article Comments

Mason City
Clear
32° wxIcon
Hi: 37° Lo: 22°
Feels Like: 22°
Albert Lea
Clear
27° wxIcon
Hi: 34° Lo: 20°
Feels Like: 27°
Austin
Clear
21° wxIcon
Hi: 38° Lo: 19°
Feels Like: 14°
Charles City
Clear
23° wxIcon
Hi: 36° Lo: 19°
Feels Like: 13°
Rochester
Clear
26° wxIcon
Hi: 32° Lo: 19°
Feels Like: 15°
Mild weekend ahead
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Sports Overtime highlights part two

Image

Hayfield High School Donkey Basketball

Image

Sports Overtime highlights part one

Image

Chris' PM Weather Forecast 2/21

Image

Finkenauer town hall

Image

Vets need your help with transportation

Image

Youth talk tough topics

Image

Coronavirus Local Business Impact

Image

Beyond the Badge program

Image

Chris' PM Weather Forecast 2/21

Community Events