Shares in embattled Australian surf wear brand Billabong International have jumped 22% today (1 December) after it said it has received a takeover bid from Boardriders, the company behind rival Quiksilver.

Boardriders wants to acquire all of the company’s shares that it does not already own for AUD1 each, in a move that values Billabong at around AUD198m (US$150m).

Boardriders is majority-owned by private equity firm Oaktree Capital Management, which already holds 19% of the shares in Billabong and is one of Billabong’s two senior lenders.

Billabong’s board has decided to grant due diligence access to Boardriders to enable it to put forward a formal proposal. Management expects the process to take a number of weeks and has warned shareholders that there is no certainty a deal will go ahead.

The bid comes just two months after Billabong saw its full-year losses widen to AUD77.1m (US$61.1m) after writing down the value of several of its brands, including Kustom, Honolua, Xcel and RVCA. Sales fell 4.7% to AUD974.7m.

Billabong is in the midst of a multi-year initiative to try to turn around its business. Recent initiatives have included the sale of some of its smaller labels in a bid to focus on its three “big brands” – Billabong, RVCA and Element – and drive down debt.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

It has already seen a number of takeover talks collapse, most recently in 2013 when Altamont Capital Partners and Sycamore Partners expressed an interest in the business.

Just Style Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Style Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving apparel and textile industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now