SurfStitch, the Australian online retailer of action sports goods, may have a boost in market capitalization to more than 500 million Australian dollars (€342 million). According to the Australian press, trading of the SurfStitch stock was suspended after the group announced the acquisition of Surf Hardware International, a manufacturer of boards and accessories, for AUD 23.7 million (€16.2 million). This may raise the market cap from AUD 511 million (€349 million) to AUD 550 million (€376.1 million) once the shares continue to be traded.
Reportedly, taking over a manufacturer is only one of SurfStitch’s steps to diversify its business. The company has also invested in digital media and plans to open on-street shops.
SutfStitch announced the opening of three flagship brick-and-mortar stores under the North American banner Swell. As reported, the two founders of SurfStitch, Justin Cameron and Lex Pedersen, bought back the 51 percent of SurfStitch held by Billabong International last year.
They simultaneously acquired Swell, equally controlled by Billabong which then decided to consolidate its business by selling most of its multi-brand retail operations in Australia, Europe and North America.