Billabong to Acquire RVCA
After months of speculations and rumors, Billabong has announced entering into an agreement to purchase RVCA for undisclosed terms. This acquisition will pair the second largest action sports clothing manufacturer with one of the industries most buzzed about brands. We are honored to work with RVCA and are excited for the future this acquisition will create for both companies. See below.
Press Release:
July 11, 2010: Billabong today confirmed it had reached conditional agreement to acquire the California-based RVCA brand. Billabong North America President Paul Naude said the acquisition signalled an exciting time in the evolution of RVCA and would afford the brand more creative freedom.
“RVCA has done an incredible job to date in terms of building its brand, differentiating its product and supporting various subcultures through its Artist Network Program, its athletes and its advocates,” said Mr Naude. “We want to see it build on these strengths and we’ll offer the necessary support to allow it to achieve its potential.”
He said RVCA would benefit from the global infrastructure of the Billabong group.
“There comes a time in the development of a young brand when the administrative side of doing business can start to consume resources that are better applied to the creative development of the brand,” said Mr Naude. “I think this is one of the strengths of the Billabong group. We have capabilities in areas including sourcing and the management of the supply chain, distribution and general financing and these types of support structures allow our brands to focus on product and marketing.”
Brand founder Pat Tenore said he was looking forward to working with Billabong. “The original concept of RVCA was, and still is, to be a lifestyle brand that integrated different subcultures within one platform … a platform for like-minded people to produce great art and other creative endeavors, while getting recognition for their contribution and involvement,” said Mr Tenore. “RVCA will be able to take this concept even further and provide a more extensive support base for the artists, athletes and advocates we work with. “One of the key things about Billabong is its respect for the creative independence of each of its brands and that level of flexibility will allow RVCA to maintain its identity while benefiting from the support of the wider Billabong group.”
About Billabong:
Billabong is the second largest action sports clothing maker after Huntington Beach-based Quiksilver, Inc. In all, Billabong has more than 300 stores in North America, South America, Europe, Asia and Australia and last month, they offered to buy Canadian retailer West 49 Inc. for $78 million and now faces a bidding war from Zumiez Inc., based near Seattle. Billabong USA makes up about 45% of its parent company’s $1.4 billion in yearly revenue.
This acquisition of RVCA is part of a long line of acquisitions:
Billabong Acquisition Timeline
Von Zipper ( March 2001)
Element (July 2001)
Kustom and Palmers Surf (October 2004)
Honolua Surf Co. (January 2004)
Nixon (January 2006)
Beachworks (2006)
Xcel Wetsuits (September 2007)
Tigerlily (December 2007)
Quiet Flight Surf Shop (June 2008)
Dakine (August 2008)
Kira Surf (June 2008)
Sector 9 (June 2008)
Two Seasons (October 2008)
Swell.com (November 2009)
License agreement with Plan B (March 2010)
Becker Surf & Sport (May 2010)
Bids on West 49 (June 2010)
RVCA (July 2010)
About RVCA:
RVCA is the brainchild of company Founder and Creative Director, PM Tenore. Transcending the boundaries of traditional action sports apparel, RVCA is a design-driven lifestyle brand free from passing trends. Appearing as a natural on the shelves of boutiques as on those of a local skate shop, RVCA is brought together by a group of likeminded individuals from various subcultures, a collaboration of sorts, a lifestyle within itself.
PM Tenore’s intention from the very beginning has been to create a platform for RVCA, which combines art, music, fashion and a modern lifestyle in an original way. At the forefront of this vision has been RVCA’s Artist Network Program (ANP) – a venture established to showcase the talents of accomplished as well as unknown artists who inspire our generation and push the boundaries of creative excellence.
Established to promote the genuine integrity of RVCA’s subcultures while simultaneously giving back to the community, RVCA in essence is redefining the way the market views art and fashion as represented through the balance of opposites and how they coexist: water, oil; air, land; destruction, industrialization; art, science; foreign, domestic; order, anarchy; past, present.
For RVCA, it is about today, tomorrow and life as the big picture. It is about inspiring our generation, providing something of substance and culture and above all doing it with integrity and as a united family, a close-knit community.
