Billabong International has agreed to sell Sector 9, its San Diego-based skate hardware brand, for $12 million to an affiliate of Bravo Sports, which is part of Transom Capital's portfolio. Neil Fiske, Billabong's chief executive, said in a statement that the company's priority was to lift the performance of its three largest global brands: Billabong, RVCA and Element, and to simplify the business. Sector 9 was established in 1993 when four Californians had their favorite deck stolen and started building their own. Most widely known for its longboard skate equipment, Sector 9 was acquired by Billabong in 2008. It will thus become part of a group that already has several skate-focused brands, such as Pro Tec, Kryptonics, Ten-Eighty and Maple. Billabong expects the sale of Sector 9 to have minimal impact on its overall group earnings before interest tax, depreciation and amortization for the fiscal year 2017. Billabong has already divested several other assets, such as West 49 and Surfstitch, as it strives to recover from a slump two years ago. Billabong saw its sales increase by 7.6 percent to 561.9 million Australian dollars (€378.3m-$419.6m) for the half-year up to the end of December, although that amounted to a decline of 0.8 percent in constant currencies. Affected by exchange rate changes, the company's Ebitda excluding one-off items for continuing operations in the six months reached A$37.2 million (€25.0m-$27.8m), down from $42.8 million for the same period in 2014.

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