UPDATE: Quiksilver takes over rival surfwear business Billabong

London - Boardriders Inc, the parent company behind skate and surfwear brands Quiksilver, Roxy and DC Shoes is set to take over rival surfwear label Billabong with the aim of creating 'the world's leading action sports company.'

Boardriders announced it has signed a definitive agreement to take over all the shares of Billabong International Limited, which owns brands such as RVCA, Element, VonZipper and Xcel. The California-based company expects the transaction to be finalized sometime during the first half of 2018.

Once Boardriders has successfully taken over Billabong, it will lead to the creation of the world's leading action sports company, with more than 630 retail stores in 28 countries. The new combined company aims to serve the global community of action sports enthusiasts with a full range of innovative product lines.

Quiksilver and Billabong to form the 'world's leading action sports company'

Following the closing of the transaction, Dave Tanner, the current Managing Director at Oaktree and Chief Turnaround Officer for Boardriders is set to become the Chief Executive Officer of Boardriders. Pierre Agnes, currently the Chief Executive Officer of Boardriders, will then become President of Boardriders. Agnes will remain a Board member, and lead a substantial portion of the integration of the two companies.

"The combination of these two leading action sports companies, which include a broad range of iconic brands with deep heritage in surf, snow, and skate, is very exciting for all of us who share a passion for outdoor action sports," said Tanner in a statement. "We are committed to preserving the autonomy, creativity, and unique cultures of all the brands while we leverage our best-in-class operating platform to accelerate the growth of the brands globally. We are excited to become one family with the Billabong team, and look forward to working together arm-in-arm to achieve the promise that this combination offers."

"Creating one integrated global platform will enable the combined company to enhance its investments in product innovation and quality, digital marketing, consumer engagement, and e-commerce, which ultimately will benefit our consumers and strengthen the company and industry," added Agnes. "With a larger and stronger platform, we see many exciting opportunities for our employees, customers, suppliers, and athletes. I am excited and honored to pass the leadership baton to Dave and to continue to partner with him to drive the next phase in the evolution of Boardriders."

Boardriders has yet to confirm the future role of Neil Fiske, the current CEO of Billabong Group "We have high regard for Neil and what he has accomplished over the years. I personally have valued his keen strategic thinking and leadership. I very much hope that he will join us for the next leg of this journey and continue his contribution to these great brands," said Matt Wilson, Chairman of Boardriders and Managing Director and Co-Portfolio Manager at Oaktree.

Previously operating under the name Quiksilver, the company rebranded as Boardriders in 2017 after exiting chapter 11 bankruptcy protection under the ownership of funds managed by Oaktree Capital Management. Following the successful turnaround of the company and the restructuring of the Boardriders platform, the company began eyeing rival company Billabong for a potential takeover, making a takeover bid for the Australian company in December 2017.

Photos: Boardriders website, Billabong Facebook