Dive Brief: 

• Authentic Brands Group, a New York-based company that owns Reebok and Nautica, announced plans last week to acquire Boardriders, which oversees sports and lifestyle brands Billabong, Quiksilver, Roxy, RVCA, DC Shoes and Element. 
• ABG did not disclose the terms of the deal, which is expected to close in Q3 this year. The company did not immediately respond to a request for comment Tuesday, though unnamed sources told Bloomberg last month that ABG will likely pay around $1.3 billion for the acquisition. 
• Snapping up Boardriders aligns with ABG’s playbook, which has been focused on expanding its global presence through acquisitions. The Boardriders portfolio brings in about $2.9 billion in revenue each year through a distribution network of over 500 owned retail stores, 7,000 wholesale accounts and e-commerce channels across 35 countries, according to the announcement. 

Dive Insight: 

ABG has become a behemoth, now counting more than 40 brands under its purview, from fast fashion giant Forever 21 to luxury French fashion house Hervé Leger. With the acquisition of Boardriders, ABG expects to grow annual sales to $27.6 billion and expand its retail presence to more than 11,100 freestanding stores across the globe, according to the announcement. 

“Along with the great brands and impressive global reach that will come with this acquisition, we see Boardriders’ potential as a thriving online marketplace under Authentic’s ownership,” ABG founder and CEO Jamie Salter said in a statement. 

The acquisition will also include Surf Dive ‘n Ski, an Australian lifestyle retailer with 80-plus locations and an e-commerce platform. “With Boardriders’ proven retail playbook, we also see tremendous opportunities to accelerate the expansion of its shop-in-shops, branded retail stores, wholesale and e-commerce worldwide,” Salter said. 

ABG is buying Boardriders from Oaktree Capital Management, which is known for picking up distressed companies. Oaktree forged a deal to nab a majority stake in Boardriders in 2016, when the California-based retailer — then known as Quiksilver Inc. — was in the throes of bankruptcy court after losing most of its market value in one year. Two years later, Oaktree Capital Management also snapped up Billabong. 

The Boardriders acquisition aligns with ABG’s plans to grow its expansive portfolio. WWD reported last month that the company is also eyeing Hunter Boots, a British heritage brand that has been financially struggling for years. 

Last year, ABG bought Ted Baker, another British brand, for about $255 million in cash. ABG scooped up the brand after it had experienced a tumultuous few years, including an accounting scandal in which the company had overstated the value of its stock on its balance sheet. 

Shortly before the Ted Baker acquisition, ABG also reached a co-ownership deal for DB Ventures, former soccer player David Beckham’s global brand. At the time, an unnamed source told CNBC the company paid almost $270 million for a 55% stake in DB Ventures. 

The deal allowed ABG to open European headquarters in Beckham’s offices in London, the publication reported. In return, Beckham snagged an ABG shareholder seat.