Billabong to sell SurfStitch and Swell
In the end, Billabong has decided not to keep SurfStitch. Having announcing earlier this year that it would examine all opportunities related to its multibrand e-commerce site SurfStitch and Swell, the board-sports company has announced the sale of its shares in the two companies.
It’s a decision that is part of Billabong group CEO Neil Fiske’s plan to focus on the development of an omnichannel model for company brands Billabong, RVCA and Element - a strategy put into motion since his arrival at the company at the end of last year.
According to a statement from Billabong International Limited, SurfStitch, which has a presence in Europe and Australia, and Swell, its American counterpart, will soon be taken over by a consortium of investors including the founders of SurfStitch, Justin Cameron and Lex Pedersen.
The duo founded the site, which employs more than 300 people in Australia and France, in Sydney in 2007. Billabong’s brands will continue, however, to be sold on the sites.
The sale of Swell and the 51% of Surfstitch held by company is expected to generate some 25 million euros (35 million Australian dollars) for Billabong.
With the transaction, the founders of SurfStitch will add North America to the scope of their business. With a combined turnover of over 70 million euros, they describe themselves market-leaders in the field of board-sports e-commerce.
The transaction should be finalized by mid-September 2014.
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