Authentic Brands Group has snagged another one.
On Friday, the brand development, marketing and entertainment platform made a binding offer to buy Boardriders, the parent company of Quiksilver, Billabong, Roxy, DC Shoes, RVCA, Element, VonZipper and Honolua.
Terms were not disclosed but the deal for the action sports and lifestyle company was made with funds managed by Oaktree Capital Management, L.P.
The acquisition of the business, which has annual sales of just under $3 billion, is expected to increase Authentic’s annual retail sales to $27.6 billion and its retail footprint to more than 11,100 freestanding stores and shop-in-shops globally.
“As an early believer in the global and commercial appeal of action sports, this brings me back to the roots of my early career,” said Jamie Salter, founder, chairman and chief executive officer of Authentic. “Along with the great brands and impressive global reach that will come with this acquisition, we see Boardriders’ potential as a thriving online marketplace under Authentic’s ownership. With Boardriders’ proven retail playbook, we also see tremendous opportunities to accelerate the expansion of its shop-in-shops, branded retail stores, wholesale and e-commerce worldwide.”
Authentic also owns Volcom, another action sports brand.
The brands in the Boardriders portfolio date back more than 50 years. Today it is a diversified global business with operations in the Americas, Europe, Australia and Asia. The portfolio generates $2.9 billion in retail sales annually through a network of 500-plus owned retail stores, 7,000 wholesale accounts and e-commerce in 35 countries.
As part of the deal, Authentic will also acquire Surf Dive ‘n Ski, a leading lifestyle retailer in Australia with more than 80 locations and a successful e-commerce platform.
“We are proud of our deep connection to the global action sports community, industry-leading brands and world-class teams,” said Arne Arens, CEO of Boardriders. “Under Authentic’s ownership, Boardriders will be uniquely positioned to expand the reach of our iconic brands to millions of consumers, capture market share in our core categories and grow white spaces, including premium athleisure, training and lifestyle.”
The acquisition is subject to the consultation of certain Boardriders employee representatives, the signing of the definitive agreement and certain standard closing conditions and approvals. Authentic expects the deal to be finalized in third quarter of this year.
BofA Securities and Goldman Sachs are acting as financial advisers and Latham & Watkins LLP is acting as legal adviser to Authentic. Moelis & Company LLC is acting as a financial adviser and Kirkland & Ellis LLP is acting as legal adviser to Boardriders and Oaktree.
Authentic owns more than 40 brands across a variety of categories including Reebok, Nautica, Ted Baker, Sports Illustrated and Marilyn Monroe. Its brands currently generate sales of $24.7 billion globally and it operates 10,800 stores in more than 150 countries.