Israeli fashion retail chain Fox-Wizel Ltd. (TASE: FOX) is buying 50% of the shares in Billy Haus, the company that operates the Billabong and Quiksilver brands chains, from Effi Haus, its partner, for NIS 24 million. If the deal is completed, Fox-Wizel will hold all the capital and voting rights in Billy Haus.
Among other things, Billy Haus holds an exclusive franchise to sell Billabond and Quiksilver products in Israel. It imports and sells sea surfing products and accessories, as well as extreme sports fashion products, in 38 nationally deployed stores. It also sells merchandise wholesale.
In late 2018, Billy Haus contracted an agreement with UG Manufacturing Co. Pty. granting Billy Haus an exclusive franchise for setting up and operating stores in Israel under the Boardriders brand name. Among other things, these stores will sell the DC Shoes, Quiksilver, and Roxy brands.
If the deal is completed along these lines, Fox-Wizel will consolidate Billy Haus's financial statements with its own, and accordingly revalue its investment in Billy Haus according to its fair value, based on Billy Haus's equity for the first quarter of 2019.
Published by Globes, Israel business news - en.globes.co.il - on June 13, 2019
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