Irvine-based Billabong USA has won a brief contest to acquire Canada’s West 49 after rival suitor Zumiez Inc. said it’s pulling out.
Zumiez, which is based near Seattle and runs a chain of stores selling clothes inspired by skateboarding and snowboarding, said it’s dropping its bid for West 49 after it failed to reach agreement with the company on a review of its books.
The move clears the way for Billabong’s $79 million June offer for West 49 to proceed.
Earlier this week, Zumiez said it was prepared to top Billabong’s offer for West 49, which runs a chain of 138 mall stores in Canada selling clothes inspired by surfing and skateboarding.
The deal stands to more than double Billabong’s North American stores to 230.
The company, part of Australia’s Billabong International Ltd., makes clothes inspired by surfing, skateboarding and snowboarding.
Billabong makes clothes and other products under the Billabong, Element and Von Zipper brands, among others.
With a series of acquisitions Billabong has grown into a major retailer, running several store chains.
In all, Billabong has more than 300 stores in North America, South America, Europe, Asia and Australia.
Billabong USA makes up about 45% of its parent company’s $1.4 billion in yearly revenue.
Earlier this week, Billabong said it is buying Costa Mesa’s Rvca Clothing for undisclosed terms.
The deal, rumored in recent months, is estimated at $26 million, according to analysts who follow Billabong’s parent company.
The move pairs Billabong, one of the largest makers of clothes inspired by surfing, skateboarding and snowboarding, with one of the industry’s buzz brands.
Rvca is part of a new breed of clothing makers that draw inspiration from action sports as well as fashion, art and music.