Billabong Acquires DaKine
adamsullivan
- August 21 2008
- 3,898 views
- 70 comments
According to an August 22 press release, Billabong International Limited has announced its acquisition of DaKine Hawaii, Inc..
BILLABONG PRESS RELEASE
BILLABONG TO ACQUIRE DAKINE
GOLD COAST, 22 August 2008: Billabong International Limited today announced it has entered into an agreement to acquire the business of DaKine Hawaii, Inc., a leader in the premium accessories category within the surf, skate, snow and windsurf markets.
DaKine was founded in 1979 in Hawaii by Rob Kaplan and is currently based in Hood River, Oregon, one of the premier action sports venues in North America. The brand has developed a strong reputation as the global action sports industry’s leading provider of specialized backpacks and technical accessories with an excellent historical growth profile.
Billabong International Limited chief executive officer Derek O’Neill said the inclusion of a complementary, authentic and internationally proven boardsports brand added further depth to the Group.
“DaKine is well established within the boardsports sector and it is a brand that has built its reputation on the quality and reliability of its technical range,” said Mr. O’Neill.
“It has built a strong sales base in North America and a growing sales base in several international territories, making it a powerful addition to the Group.”
Billabong North America President Paul Naude’ said DaKine had particular strength in the ocean boardsports sector and had a 20-year history in the snow category with a strong offering in backpacks, bags, gloves and accessories.
“DaKine is a brand that leads the boardsports backpack category, excels in the surf accessories market in the ultimate testing ground of Hawaii and has excellent penetration in winter product categories including snow gloves,” said Mr. Naude’.
“It is a brand that is focused on function over fashion and this, together with a strong team of athletes and compelling marketing campaigns, has endeared it to active boardsports participants.”
DaKine founder Rob Kaplan said the sale presented synergies for both businesses and he welcomed the additional infrastructure Billabong offered to support future growth.
“Billabong and DaKine have both determined that each of us has complementary skills and strengths and together we have a compelling authentic offer,” said Mr. Kaplan.
Rob Kaplan will remain integrally involved as a key member of the DaKine management team and will be based in the brand’s regional office in Maui, Hawaii. All employees, along with the current management team, are being retained and will remain in the brand’s head office in Oregon.
DaKine is expected to contribute approximately 4% of Billabong International Limited’s Group sales in the 2008-09 financial year and is expected to be earnings per share positive in year one.
For further information, contact Paul Naude’.
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August 21st, 2008 at 3:35 pm
wow- what a surprise-rumors have been circulating for over a year, now. at last it can be put to rest. another one down- room for another authentic brand in the line up now ! who’ll be next.
August 21st, 2008 at 5:00 pm
“Another one down” …don’t be so quick to judge. It might be a good thing for DaKine. Obviously it is for Billa :/
August 21st, 2008 at 5:29 pm
Obviously, and I’m sure it will be good for Dakine as well. Wider Distribution, Direct to Consumer, Manufacturing leverage….. who wins here? do you think you’ll see the benefits ? Its all in the bottom line. I think Billabong got a sweet deal, and I hope DK takes care of all the peeps they just pulled the rug out from under.
August 21st, 2008 at 5:31 pm
Im stoked, one step closer to Quik… I mean World Domination…wahhahhhahah
August 21st, 2008 at 7:00 pm
So Billabong buys indy brands and get props, but when Burton does it, the hate ensues. Why is that? Just curious.
August 21st, 2008 at 7:38 pm
I think because Billabong does a good job of preserving what made the Indy brands cool and keeps the people that got them going running, just with better resources. That’s been the story with Element, VZ and Nixon and I imagine will play out with play out with Sector 9 and DaKine. Notice that Billabong always looks for market leaders ready to take the next step. When they purchase the “Indy Brands” they often allow the company to retain a lot of its culture/coreness, but give it resources it wouldn’t have otherwise. They do not bottom feed for acquisitions.
Burton’s approach seems to be more assimiltive. Also, I think that Burton comes to the market with a lot of attitude which they are carrying from their massive market share. They know that retailers can’t live without them and they flaunt that power (discounting online, snow dazzle, ect). Billabong will also flex, but they seem like much more of a partner. Burton would probably be well served to just relax a little.
Again, just my perspective, but I live in that world and at the end of the day, I see Billabong as a friend while Burton seems like someone who really doesn’t like me, but smiles at me anyway. Unfortunately, there are some other companies right now that also I’m not sure I trust.
August 22nd, 2008 at 4:57 am
Billabong ruined Nixon…knocked it down from a high end brand to a piece lamen company to squeeze as much money out of it and they did the same with Element, their stuff is bunk now. VZ never passed a third rate goggle and sun glasses company. As Burton they bailed habitat out of bad situation and increased there distribution and petty much left well enough alone, Channel Islands same, and Forum same.
August 22nd, 2008 at 7:37 am
oh well, maybe billabong will buy my store so I can retire
August 22nd, 2008 at 7:52 am
They need a snowboard brand under their belt. Capita or Stepchild would fit in.
August 22nd, 2008 at 8:00 am
Is Dakine really an “indie” brand? Been around since long time… what, 15-20 years maybe? Their stuff is primo and DaKine made the steps from straps to packs to where they are now. Huge compliment from Billabong to want to aquire them. I’ll still buy Da Kine as long as the product and designs are Da Best…
August 22nd, 2008 at 8:10 am
Ditto to the dot dot!!
August 22nd, 2008 at 8:55 am
Capita or Stepchild? those brands sales together would not even raise an eyebrow at Billabong
August 22nd, 2008 at 9:03 am
Street cred bro.
August 22nd, 2008 at 10:45 am
can’t take a bag of cool to the bank
August 22nd, 2008 at 10:47 am
LOL…If anything there gona buy arbor or Rome..Shit I don’t want to give them any ideas..Damn it.
August 22nd, 2008 at 11:33 am
Sector 9 already manufatures arbor longboards. Since they just go t gobbled up by bong, that would seem to be a natural progression. Rome does not manufacture enough product in CHINA, so they will problably turn a blind eye on them
August 22nd, 2008 at 11:40 am
And why not nidecker , they are strong in europe, but not in usa, have a really good image but not well distribuate… and they control their technology and production… a good potential , no ?
http://business.transworld.net/2008/05/16/behind-the-scenes-transworld-business-visits-nidecker%E2%80%99s-swiss-factory/
August 22nd, 2008 at 1:41 pm
At the end of the day, Dakine is not a core brand and being bought by Billabong proves it. Not saying they weren’t a core brand back in the day but now they?re kinda on a different level. Like Billabong they don?t really compete with the core Surf Companies. Same with Element… Not a core skate company anymore.
You can go into Sports Chalet and buy Billabong, Element, and Dakine. People rock Element shirts and have no idea it’s a Skate company (sorta). In a way they’re selling the image off being a Surfer or a Skater.
Dakine left the surf world and is now a company that sells the Surfing Image. Who knows maybe they will get there own store in Time Square.
August 22nd, 2008 at 2:38 pm
I suppose one could argue that since Burton is a publicly traded company and Billabong isn’t, the motivations by which they manage their brand portfolios are different - i.e. managing brand based on P&L vs. viewing it as an investment into the brand itself. Shareholders want returns. Best example of this is Quik’s acquisition and subsequent dumping (or attempts to dump) Rossignol. I for one would love to see what Rossi could do if it were bought by a company that actually gave a shit and was more interested in advancing the sport of skiing instead of protecting their fat bottom line.
For what its worth, I actually think both Burton does an excellent job of managing its brands (as opposed to the buy and slash tactics that those two fuckwits Tim Pogue and Jamie Salter employed during their tenue with Ride Snowboards in the mid-90’s.
August 22nd, 2008 at 2:48 pm
What an astute assessment on what is and isn’t core…
With your powers of perception it’s a wonder that some company or marketing agency hasn’t snatched you up and put you on a fat salary.
Perhaps it’s because its illegal to hire children?
August 22nd, 2008 at 2:55 pm
I think Billabong is a publicly traded company..
As of 22 Aug 2008
11.30AUD
Price Change
+0.55
Percent Change
+5.12%
Analyst Recommendations
Company: Billabong International Ltd
ASX Code: BBG
Recommendation: Members only
Price at Review: Members only
Current Price: Members only
Change since review: Members only
Category: BLUE CHIP INDUSTRIAL
Issue: 250
Date: 16 Jun 08
Fundamental risk
Share price risk
Billabong is defying the US economic slowdown by acquiring its partner Quiet Flight, which operates 13 stores on the US east coast, including the flagship Billabong and Element stores in Times Square, New York. Quiet Flight will add roughly $40m of…
August 22nd, 2008 at 3:25 pm
“Dakine left the surf world and is now a company that sells the Surfing Image”
You’ve left the real world and now sell the jack ass image.
Seriously, that is the most ridiculous thing I’ve heard yet on this subject. It has hardly been 24 hours since that press release and you come to the plate with that??
Time will tell, but I would put my money on Dakine remaining on track with the product and image it has always had…A great one.
August 22nd, 2008 at 4:15 pm
You’ve got it mixed up. Burton is private, Billabong is public
August 22nd, 2008 at 4:34 pm
“left the surf world” who’s buying all those Dakine tail pads and leashes then?
August 22nd, 2008 at 5:59 pm
I stand corrected.
August 22nd, 2008 at 8:34 pm
To Codgy Industry Burn Out: Well maybe because Billabong is core still and the Industry leader right now, and Burton is a corporate conglamorate and gives nothing back to the sport of surfing! How many ASP Burton sponsored contests are there again, I forget…..that’s right….none.
Billabong Rules. Core Surf. Industry Design leaders, period.
August 22nd, 2008 at 8:39 pm
BURTON WAS AND STILL IS: A COMPLETE OUTSIDER TO THIS INDUSTRY, I DON’T CARE WHO THEY BUY UP TO TRY TO GAIN RESPECT AND AUTHENTICITY.
BILLABONG HAS BEEN THERE SINCE DAY ONE, AND YOUR RIGHT STEVO, THEY ACTUALLY GIVE BACK TO THE SPORT OF SURFING SPONSORING MORE 6 STAR ASP EVENTS THAN ANYONE.
August 22nd, 2008 at 10:51 pm
Nothing personal against Capita or Stepchild, but they’re barely on the snowboard map. Billabong has been acquiring brands that are industry leaders or very close to the top. Obviously when it comes to dollars in snowboard market it’s Burton and then everyone else. I can’t see Billabong wanting to enter the hardgoods market, especially after seeing how Quiksilver did with Rossignol. And as far as street cred goes, they’re not exactly in desperate need of a PR boost right now.
August 23rd, 2008 at 8:07 am
Sole Tech’s next up for a Billabong. Mark my words!
August 23rd, 2008 at 8:28 am
you are probably right, that would suck. Sole tech say no, all you people out there that own your companies. Do you not have enough money. I mean really, how much do you need. Its like selling one of your kids. Unless you want to retire don’t sell to those big companies that could care less about you or your employees
August 23rd, 2008 at 4:21 pm
Sole Tech should sell to Billabong. Etnies is getting killed by Nike, Vans and DC. They don’t have the resources to compete with those guys.
August 23rd, 2008 at 4:43 pm
Now look whose future is looking grim, welcome to the real world Volcom! Billabong is just crushing these guys. Whats their power moves? buying up LSS and electric? their moves are personal and dont make sense. Volcom stock was 57 dollars a share less than a year ago. Now ? 18 a share.
Best dump it while you can! They done….
August 23rd, 2008 at 6:13 pm
Volcom is hurting bad right now.
Word on the street is that they are about to get gobbled up by an even larger company within the year.
August 24th, 2008 at 12:12 am
So to the guy’s who wrote “Well maybe because Billabong is core” and “BURTON WAS AND STILL IS: A COMPLETE OUTSIDER”, Burton didn’t acquire CI to get into the surf market. Jake and Al are friends and thought it might be a good decision, for the benefit of both companies to share technologies and grow their respective businesses. Burton has no intentions of making or getting into surf. They partner/purchase with these companies and let them do their thing with the support they need to benefit all parites. Do you see the direction of Forum changing? Or CI since the acquisition? Anyways, when all the chips fall, there’s only going to be a handful of companies controlling the whole show. Just be glad that some companies are still private(Burton), and the other one’s still support the sports you’ve come to love.
By the way, Burton may not put on any surf events but they do the Global Open Series for snowboarding. The ONLY snowboard company to do anything of the sort. I believe Billabong and Quick both play in the snowboard market……where are they? Hmmmmm…….goes both ways.
August 24th, 2008 at 7:06 am
Dude Dakine doesn’t sell the surf image, they sell products for almost all ASI sports. They are not percieved as just a surf company and anybody who isn’t in to these sports probably don’t even know who or what Dakine is, If anything billabong will ruin it by pimping the Dakine brand to to represent the ASI industry as whole.
August 24th, 2008 at 7:09 am
Ditto…
August 24th, 2008 at 7:11 am
Last time I check Burton was a snowboard company???
August 24th, 2008 at 7:13 am
Well said SK…
August 24th, 2008 at 7:20 am
Burton’s acquisitions are not greed inspired, they bail out companies that represent their sport and it would be a shame to see them go under by mere economics controled and created by the major players in the industies that they do not have the resources to compete with. Quik, Volcom, & Billabong and Ride to name a few, all of which are public.
August 24th, 2008 at 8:53 am
all depends how you rate getting killed. Nike sb is a flash in the pan, They are about to get clipped by a lot of skate shops. Vans is on a role with the classics, but not a whole lot of skate shoes selling. I think sole tech is doing good in their market, and I am sure they are turning a nice profit. Who wants to be a dc, thats a mall brand. You can barely give those away in a skate shop. Mall brands come and go. Its a sham the direction dc has headed. Who woulda thought.
August 24th, 2008 at 8:56 am
thats funny, burton is a greedy company, lets be real
August 24th, 2008 at 1:05 pm
The industry needs to start helping smaller more independent companies and quit making deals with Nike and Under Armor and just soulless profit seeking corporations.
Check out this one
http://www.thelevitationproject.com
August 24th, 2008 at 1:14 pm
Ya maybe but not to the extent of other brands, you have to be a bit hungry to survive in these industries. I think ya maybe they are a bit greedy when it comes to their relationshipswith stores, I will admit that much.
August 24th, 2008 at 7:53 pm
So cal is so lame it hurts to even type this. The whole place needs to hit the reset button.
I feel sorry for you all.
August 24th, 2008 at 10:51 pm
Big BS I think you’ve nailed it in one.
I feel much more confident knowing that a dedicated industry brand is purchasing another dedicated industry brand. Instead of a completely unrelated company trying to exploit what ever “youth market” sport / product is trendy this year to expand its primary market share.
In a competitive and fickle market such as retail there really is safety in numbers.
August 25th, 2008 at 7:39 am
so, they are just a little greedy! They bought the program cause they felt sorry, and they paid good money, and they bought dna cause the skate industry needed help, and they bought ci because jake felt bad for al. I mean really people burton has long forgot its roots and is just as greedy or maybe you would prefer to call it agressive as quik and billabong. Look at the real picture, not the one 10 years ago, and same for volcom. Very different companies than they were when they started out.
August 25th, 2008 at 9:23 am
Ya but the big diffrence is the companies Burton buys up don’t really change all that much after the buy out…That’s my real Point
August 25th, 2008 at 10:43 am
I disagree, I wouldn’t call anything from the program the same. It just takes a little longer for the burton change. You could say the same thing about billabong, and quick.
They are all the same. Agressive we only care about ourselves business’s .
August 25th, 2008 at 11:59 am
Sorry, But I think it is a bad thing! Nothing against Billabong, They have had a great ?run?. And seem to still somehow have a ?core? place in surfing (due to a great marketing team).
But these guys are buying up everything. I have personally dealt with companies they have bought and so far it has not been very fun.
Whenever this happens in any industry it almost always only good for the people who used to ?own? the company. Employees who helped build the ?brand? go through much stress and have much ?uncertainty? of how or ?if? they will fit in with the new owners.
Sorry, but simple greed is now leading the way in in the “new surf industry”.
August 25th, 2008 at 12:31 pm
It’s all about greed, and how much we all have of it.
Billabong buying Dakine - as above - it’s better than some faceless multi national company buying it. That goes for all of the acquisitions - I think it is better for the big guys within the same relative industry to buy the smaller guys than to a) have the smaller guys go under or b) have some true outsider buy it up.
Is it a bad thing - if it allows the companies to grow and continue to make better products - then I say no. as example - Quik buying Mervin a certainly allowed Mervin and Mike Olson the freedom to get to where they have in the last few years.
If someone was to come to me and offer me HUGE cash for my shop - it would not really be that hard of a decision - it would allow me the freedom to do other things - and actually go riding more - which is why I started in this industry 24 years ago!
August 25th, 2008 at 12:46 pm
Thanks Warren. Everyone please read his remarks, as he knows what up.
August 25th, 2008 at 2:11 pm
I don’t think da kine or mervin were going anywhere when they were bought. Both were making money, and I don’t think lib would be different. Da kine was and is very profitable. Can’t disagree with the selling to go riding issue, but I don’t think it is good for all those long term employees. That would be the big question mark in selling.
August 25th, 2008 at 4:01 pm
in-breed-ing: the mating of closely related individuals of a species, especially over many generations. It maybe done deliberately to enhance desired traits in livestock or pets but increases the risk of inherited defects affecting health and intelligence because of his, her, or it’s ancestors were to closely related to each other.
August 25th, 2008 at 7:58 pm
mmm so what we need is a genetic retail specialist who can create a mutant hyper-breed of retailer combining surf, skate, snows ports and street culture.
Where the amount of credability increases in line with profit growth and any smaller company taken over by a larger company will be immortalised in a branding Hall of Fame.
August 25th, 2008 at 9:16 pm
I see the Podium brands falling more into the Billabong portfolio.
Lakai back to girl/choc/fourstar distribution
dvs & matix to billabong?
seems like all those guys use the same teeth whiteners anyway.
August 26th, 2008 at 2:46 am
hahaha…wake up girls, Burton didn’t buy CI to get into surf. hahahaha…
So it’s all just a big coincidence that Analog surfshorts, Gravis flipflops, Anon sunwear, B by Burton streetwear can now be sold at all CI dealers that CI worked with for years.. or better now we ( Burton ) can build flagship stores in LA and we can fill it with all our own products year around and we don’t need anyone nomore ! Stop dreaming will ya ! It’s all part of a big well planned strategy to ruin the business and take it all.. don’t believe the smooth press releases written by fancy NY pr agency’s !
August 26th, 2008 at 8:00 am
stevo wants a mouth full of billabong.
billabong isn’t core surf, but who cares anyways.
August 26th, 2008 at 9:35 am
Fair enough…these goliath companies all suck in the end…where is david when you need him.
August 26th, 2008 at 9:39 am
We can call it billbongasaurus and Jakezilla.
August 27th, 2008 at 3:29 pm
Burton / Channel Islands, Channel Islands doesn’t sponsor asp riders, but there must be something on those boards that is taking on the majority of categories of surf excluding long board, No need to sponsor they are the best surf boards out there period.
Need proof? just look at the charts…
Burton doesn’t give back to the sport???
Then what other person or company does?
August 27th, 2008 at 4:46 pm
All you your hate is really just a reflection of your bitterness of not getting paid working in action sports.
“Bro” never turns a profit.
At least in the case of Jake & Burton there is a figurehead getting all the benefits, rather than some faceless corp like billabong.
You’re just bitter Jake is having more fun than all of you combined.
And as far as Billabong/Dakine goes. Who cares.
August 27th, 2008 at 6:46 pm
Big BS I love it!
I can visualise the marketing collateral now… A Godzilla like branding creature with a halo , holding an orphan and a box of kittens in one arm and taking a sword to traditional corporate brands with the other.
The tag line reads “Globalisation will never be the same”
August 28th, 2008 at 6:41 am
bro broom,
bro’s are the roots of the sport, just in case you didn’t know. Good specialty shops drive the mainstream biz. You can’t say burton was built on sports authorities.
As far as jake goes. I certainly am not bitter. I would say I am disappointed. He certainly has forgot his roots. He may just as well sell it to billabong. It wouldn’t change the way its ran, and he would have a few hundred mil.
Core isn’t always poor. If you don’t support the upstarts like airblaster, or stepchilds, the your sport is boring. Its a balance
August 28th, 2008 at 10:07 am
Jake try calling surfing to give him a fist full of cash, but the line was disconnected cause Surfing couldn’t afford to pay the bill… So Jake was like “Whatever.”
August 28th, 2008 at 12:56 pm
Jokers- Lots of peeps made this Co. what it is today, and from everyone I talked to, the 99.9 million had no trickle down effect at all. Just business as usual, as they say. Lots of love.
August 29th, 2008 at 1:06 pm
Hope this is the best for both companies. It can only make Dakine and Billabong more competitive. Good Luck.
September 30th, 2008 at 12:08 am
I care, Billabong is pop!! I Prefer CORE…
October 7th, 2008 at 8:26 pm
Congratulations to Rob and the team at Dakine who have managed to maintain a brand that manages to span divides that others never have and may never will (who else can say they are still cool and relevent in the eyes of skiers and snowboarders, surfers, kite boarders and wind surfers and skate boarders all at the same time???) The spirit of Maui is still alive at Dakine today, let’s hope the good people there all smile when the smoke clears.
Meanwhile, in this time of financial uncertainty when a cash $$ company is willing to step forward and put down $100mil to get you in the mix you can’t argue something is right.