Billabong hasn't disclosed what it it will pay for RVCA. Photo / Kenny Rodger
Surfwear retailer Billabong is buying Californian clothing brand RVCA for an undisclosed amount.
Billabong said yesterday it had reached conditional agreement to acquire the "progressive apparel brand", which was founded in 2000.
The retailer said RVCA was "an art and design-driven brand focusing on a diverse range of activities that
both represent and inspire youth".
Billabong chief executive officer Derek O'Neill said RVCA was "one of southern California's most exciting emerging brands".
"RVCA is not defined by any single sport or culture. It represents a community of culturally aware youth and is inspired by a diverse range of interests, each of which is underpinned by an original, highly creative design element," he said.
"It is a brand that has developed a very strong presence in the United States, particularly in southern California, on the strength of its fashion-forward ranges in categories including art-driven T-shirts, denim, wovens, boardshorts and, more recently, its girls line." Billabong said RVCA's revenue derived mostly from the US, with expansion into other key markets, including Australia and Europe, in its infancy.
RVCA founder Pat Tenore and his existing management team would continue to drive the development and growth of the brand.
Billabong said it expected RVCA would contribute around 2 per cent of group revenue and would be earnings per share neutral in the 2010/11 financial year.
"The purchase price, which is not considered material, remains undisclosed," Billabong said.
The asset acquisition agreement was subject to usual conditions precedent.
- AAP
