KEY POINTS:
MELBOURNE: Surf, snow and streetwear retailer Billabong International has acquired United States-based wetsuit and watersport brand Xcel for an undisclosed sum.
The US brand provides products for the surfing, diving, ocean paddling, sun protection and wakeboarding markets.
Its founder and owner Ed D'Ascoli will remain with the business and continue to operate Xcel from its Hawaiian base. The acquisition, effective from September 1, is expected to lift earnings per share in year one, Billabong said yesterday.
The Australian company expects its new acquisition to contribute in the range of one per cent to group revenue in the 2007-08 financial year.
Billabong reported a net profit of A$167.25 million ($202.67 million) for 2006/07, up 14.6 per cent in reported terms, or 19.2 per cent in constant currency terms, compared with A$145.89 million in the previous financial year.
