Billabong International Limited has reached in-principle agreement to acquire its licensed business in South Africa. The business comprises a wholesale distribution channel (and associated outlet store) and small-scale manufacturing facilities.
The purchase is subject to a number of conditions precedent, including South African Reserve Bank and anti-trust approvals and satisfactory due diligence.
It is expected the South African business will contribute approximately 2% of the Billabong group's projected full year revenue in the 2007-08 financial year.
The purchase, which is expected to be completed within one month and is effective 1 July 2007, is forecast to be EPS-positive in year one.
Billabong International Limited
marketing@alchempro.com
