The popularity of surfing as a sport has skyrocketed in the last few decades. In other words, this is the same sport that won’t be an official Olympic event until the 2024 Paris Games. There are several notable figures in surfing history, including Kelly Slater, John John Florence, Laird Hamilton, and others. Nonetheless, given that every sport has to generate money somehow, the companies that sell surfing gear tend to do rather well. As a result of a recent billion-dollar acquisition, surfwear companies like Quiksilver and Billabong are in the spotlight. The deal was announced by the same company that owns the labels of soccer icon David Beckham and four-time NBA champion Shaquille O’Neal.

Bloomberg reported recently that Authentic Brands Group Inc. was getting close to a deal to acquire the parent company of surfwear giants Quiksilver and Billabong for an estimated $1.3 billion. The company also owns the labels of Muhammad Ali and Elvis Presley, among many others. Since the surfing sector continues to expand at a rapid clip, the company is considering venturing into the Olympic sport.

The status of the deal

It’s a new frontier for Authentic Brands Group Inc. to enter the surfwear industry. Yet in terms of apparel labels, the company is well recognized for buying up major players across several markets, such as Reebok, Brooks Brothers, Eddie Bauer, and many more.

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As reported by Bloomberg, Oaktree Capital Management, the current owner of both Quiksilver and Billabong, has been unable to come to a mutual agreement with the purchasers, despite widespread speculation. After emerging from bankruptcy in 2016, Quicksilver was purchased by Oaktree, a firm that specializes in failing businesses, and rebranded as Boardriders. Within two years, it had become the talk of the surfing industry and had acquired its rival, Billabong.

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One of the most acquisitive organizations in the consumer and retail industries, Authentic is managed by Chief Executive Officer Jamie Salter. This agreement is significant since not just Authentic, but also the surf brand Volcom, has entered the fray. Volcom’s goal with this massive acquisition is to further establish itself as a leader in the surf business and capitalize on the brand’s reputation for producing high-quality, long-lasting items. Oaktree is yet to make a decision on this offer, despite the strong debates in the community.

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What do you think of this terrific deal? Will it extend the surfing world further? Stay tuned for more updates on this deal.