Billabong Group has entered into an agreement to sell off its skate hardware brand, Sector 9, for approximately US$12 million.
The sale is to an affiliate of Bravo Sports, a portfolio company of Transom Capital Group.
California-based Bravo Sports has a number of skate oriented brands within its portfolio including Pro Tec, Kryptonics, Ten-Eighty and Maple.
“Our priority as a company has been lifting the performance of our three biggest global brands in Billabong, RVCA and Element, while simplifying the business wherever possibile,” said Neil Fiske, CEO, Billabong. “This transaction is part of that simplification and is consistent with our stated strategy.”
The surfing group expects the sale of Sector 9 to have minimal impact on overal group EBITDA in FY17.
“Sector 9 is a unique brand in the specialty segment of longboard skate hardware,” said Fiske. “We are confident the brand will continue to meet the needs of its customers under its new owners.”
Billabong’s financial adviser for the transaction was Threadstone Advisors with Latham & Watkins LLP advising in an external capacity.
The sell off of Sector 9 comes after Billabong swung to a first half loss of $1.6 million earlier this year, announcing a seven part strategy as part of turnaround.
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