- Sara Ehlers |
Surf-inspired company Billabong International Ltd. recently just announced plans to sell one of its skate brands. The Australia-based company will be selling its Sector 9 brands for 12 million dollars, as reported by WWD.
The deal includes selling Sector 9 to an affiliate of Bravo Sports. The brand will join the company’s portfolio of other similar brands. The reason for selling the brand is not directly stated, but WWD reported that the company this is part of the company staying “consistent with [Billabong’s] stated strategy.” The company will continue to focus on its three better performing brands: Billabong, Element, and Rvca. The transaction of Sector 9 is said to have a low impact on Billabong International’s overall business.
Sector 9 is known for selling variations of longboards and skateboards. The brand fit well under the Billabong name due to its sports gear. Billabong, Element, and Rvca are all known as surf and skate apparel brands. Sector 9 was a fitting pairing for those brands. However, under the new portfolio at Bravo Sports, it seems that Sector 9 will fit in just as well. As Billabong International continues to focus more on apparel, the transaction can only help further facilitate that strategy.