Billabong International Acquires Sector 9 Skateboards
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This just in from Australia: Billabong International announced it has acquired Sector 9 skateboards from Co-founders Steve Lake and Dennis Telfer. The acquisition includes Gullwing trucks. Billabong expects Sector 9 to contribute approximately 2% to the company’s overall sales in 2008-09.
Here’s the release:
GOLD COAST, 2 July 2008: Billabong International Limited today announced the
acquisition of Sector 9, a premium Southern California-based skateboard brand.
Sector 9 was founded in 1994 and has emerged as a market leader in the design and manufacture of skate longboards, a fast-growing niche segment within the skateboard market.
Billabong International Limited Chief Executive Officer Derek O’Neill said Sector 9 operated in the specialty boardsports channel with a unique product offering.
“Sector 9’s products, primarily its longboards, really differentiate it from other brands in the boardsports channel and have appeal to surfers, skateboarders and the broader youth market,” said Mr O’Neill.
“The company has not only proved the viability of the longboard segment, it has
experienced sustained growth over the past decade and has become synonymous with the California boardsport lifestyle.”
Co-founders and owners Steve Lake and Dennis Telfer and co-owner Dave Klimkiewicz are being retained as part of the acquisition in their current roles.
Mr Lake, Sector 9’s President, said he was excited by the prospect of teaming with a boardsports industry leader.
“While Sector 9 continues to maintain solid growth in the US, we are most excited at the prospect of combining our brand’s growing international awareness with Billabong’s proven global distribution network,” said Mr Lake.
The purchase of Sector 9 includes its Gullwing skateboard trucks brand. The bulk of Sector 9’s revenues are generated by skateboard and associated hardgoods sales, while apparel is a small but emerging category.
Sector 9 operates a vertical business model, with its primary design, manufacturing and distribution all based in San Diego.
Sector 9 is expected to contribute approximately 2% to Billabong International Limited’s sales in the 2008-09 financial year. The acquisition is expected to be earnings per share accretive in year one.
Tags: acquisition, billabong, billabong international, Sector 9, skate, skateboards, snow, surf
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Now here is some news worth breaking!
Yes, extremely disappointing news… Billabong is about as uncore as you can get. Prime example of the corporate mindset applied to a cottage industry.
WHERE’S THE MERGER PARTY? CONGRATS S9!!!
Feel the power of the 9!
Good on ya !! The Bong will rock even harder with the mates from San Diego. Steve, Dennis and crew are as core as they come and we welcome them to the family.
bummer, we like sector how they are, now they are going to be sold at nordstroms and macys. Not good news
To be fair, BBong is one of the only surf brands that DOES NOT sell to non-endemic stores (so you won’t be finding their product in Nordstroms, etc).
That being said, I am sort of sad to see Sector 9 get rolled into BBong, as this only serves to perpetuate the commodification of board sports in general.
well, if its isn’t sold there now it will be soon. I don’t go in there much. I do know for sure they are sold at a 9 store chain called McCaulou’s which is worse. It has a bunch of 70 year old ladys selling tommy bahama and bong shirts together. I can’t blame the sector owners for selling, but I do think it will change the company. I just hope they keep all the good people who built the brand
I’m sure they will keep those guys on - they are all very cool, very smart dudes so why wouldn’t they?
As to how much it will change the company, its hard to say. Maybe its just me, but I look at Nixon, VZ, Element, etc. and even though I think BBong seems to be pretty “hands off” - to their credit - and all those brands still appear outwardly the same, it just sort of seems like they lose their steez after they are acquired and rolled into the machine.
Sector 9 is a great company and so is Billabong - nothing but good can come from this union!
2 Companies that have done nothing but better the markets they lead…this could get interesting!
who even uses longboards as they were made to be ridden. Maybe 500 people in U.S.. Every one else uses them to get nachos and a slurppy. Look cool while getting fat.
Headline should read: “Kooky surfwear company blows 10 mil on Kooky skateboard company”
Sector 9 - made by kooks for kooks.
Hey PT- in what land are the Sector guys considered “kooks”? Have you ever had the chance to skate or surf with the Sector crew? They rip, they support the planet, have a good time and are good family guys. If that makes them kooks then sign me up.
they rip compared to someone who sucks! not other pros.
Very insightful comment. Are you suggesting that guys who work for a skate brand are not as good as professional skaters? Wow!
Hey PT, Obviously you have never seen DT surf. My bro rips. Meat, congrats on the merger. Your boards still work better than anyone else. Billanine. Gotta go, off to 7-11 for some nachos and a slurpee.
Bigspray - You proved my point perfectly.
i’ve DT surf. he’s OK.i wouldn’r say rip.
Does anybody know what sector 9 stands for? Then again, does anybody even care? I’ll take your answers off the air. Thanks.
Non stop flights from San Diego to Australia starting today!!!
could this lead way to some collaboration of designers from BB and S9… that we would see on the boards?
much better to see Billabong buying Sector 9 than Burton. now I can see my favorite contemporary soul surfer on my favorite longboard brand. some solid design collaborations will come out of this as well. no way to stop the acquisitions from happening, nice to see one go down I can support.
groovy!
nobody rides longboards except kooks who don’t skate. if they could really skate, they’d be riding regular skateboards.
Sector 9 makes “regular” skateboards in addition to longboards. Do your homework, kook.
Hey Anonymus,
I wanna see you drop San Bernardino Pass on a “regular” skateboard…
I don’t care how good you skate. The important question is: Would you get out of the skatepark to grab some spare bearings and a tool out of your car for a random kid that just lost one of his wheels?!?
Get a life you poser! Sk8in s not about being good but about enjoying yourself (together with your mates)…
Hope the Sector 9 crew stays intact, They are a great group of surfers & skaters that have made a major impact on the San Diego - National & International skate scene. Showing everyone how to bomb the hills & cruise the boardwalk in style!! Instead of filping around a regular skateboard like all the other barneys..
awesome!!! congrats 9ers!!!
im just happy it wasnt one of the good longboard manufacturers. i have a feeling that S9 is gunna get more popularity, but the product quality will decrease just so they can make an extra few bucks
more consolidation! they should diversify and buy Crocs.
BBong have to keep buying out businesses like sector 9, xcel, tigerlily, kustom, palmers, kirra surf, von zipper and element to ensure their share price keeps growing.
Sure they are buying brands which keep in line with their ‘core’ positioning but the end result is the share holders are increasing their share price.
I’m stoked that an Australian brand is starting to compete with the the 800 pound qsilver gorilla but what brand will be next to be swallowed up? Whats next for Bbong? fashion brands? we’ll see.
sector 9 has always been a great crossover brand and knowing Bbong they willonly strengthen this brand
Next Stop, WalMart. Good Luck to everyone involved.
Hey Nice, I’ve seen DT paddle out in everything from 2-20 feet and he is a solid surfer. I’m not sure what you’re definition of ripping is, but save your comments and get out in the water. DT enjoys surfing, skating and snowboarding just like all the rest of us Rippers who don’t give a flying fuck what your definition of ripping is. You’re probably part of the PT possey and are jealous of a job well done.
Stop judging and catch a wave barney.
Now the only core longboard skate company in SD.
GFH Boards, that is. http://www.gfhboards.com let’s talk about a legit team.
It’s really amusing to hear short boarders talk a lot of smack about how dudes only ride longboard b/c they can’t ride a “regular” board… and then see them crack thier skull when they try to ride a long board. Get a life PT.