Australia-based Billabong International Ltd. said today it plans to sell skate brand Sector 9 for $12 million.
The company, which sells longboards and men’s apparel, is being sold to an affiliate of Bravo Sports, which is part of Los Angeles private equity firm Transom Capital Group. Sector 9 will join a portfolio of other skate brands under Bravo that include Pro Tec, Kryptonics, Ten-Eighty and Maple.
Billabong International said the sale is expected to have “a minimal impact on overall group EBITDA” in the current fiscal year.
Billabong International oversees a multibrand portfolio of action sports companies that also includes its namesake along with RVCA, Element and Von Zipper, all of which maintain headquarters in Orange County, Calif. Billabong, RVCA and Element were identified as key focus points for its parent in 2013 when Neil Fiske, the former Eddie Bauer chief executive officer, was brought on to effect a turnaround at the then-struggling company, which had been the target of a bidding war.
“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 possible,” Fiske said. “This transaction is part of that simplification and is consistent with our stated strategy.”
The company over the past few years has sold off a number of other brands, including the retail chain West 49, Swell.com, Surfstitch, watch brand Nixon and Dakine as it continued to narrow its focus on the brands with the most potential to right and grow the business.