BasicNet acquires the Sundek brand

BasicNet continues its acquisition spree, adding Sundek to the Turin-based company's brand portfolio. As previously reported by FashionUnited, negotiations between the Turin-based group and the Californian swimwear brand continued into the autumn, following denials last spring. Today, the agreement was signed and announced for the acquisition of the iconic beachwear brand. The deal includes 100 percent of Kickoff spa, the current owner and manager of the brand, which is controlled by Winnie srl.

Last Monday, the BasicNet Group completed the acquisition of the European rights to the Woolrich brand and 100 percent of Woolrich Europe spa. The latter company manages its distribution and retail.

BasicNet acquires Sundek brand

“We are welcoming another historic American brand with seventy years of history, deeply rooted in the culture and customs of the Italian market and beyond. It is a brand we have always admired and used personally. Like others in our group, it stands out from a distance,” Lorenzo Boglione and Alessandro Boglione, CEOs of BasicNet, highlighted in a statement.

The KickOff Group ended the 2024 financial year with a turnover of 27.6 million euros and an EBITDA of 6.8 million euros. It operates 27 monobrand stores in Italy, including eight outlets, in addition to seven stores across Spain, France and the US.

The enterprise value of the Kickoff Group, which includes Kickoff USA Inc., Kickoff Sl and Kickoff France Sas, has been set at 33.5 million euros. After deducting the net financial position, which includes bank debts, tax liabilities and debts to the shareholder, the initial consideration for the transaction is approximately 10 million euros. This amount is subject to standard adjustments based on the final calculation of the net financial position at closing, which is expected by the end of December.

The initial consideration will be paid entirely through the transfer of treasury shares already held in the portfolio. These are valued at the average market price of the six months preceding today's date, which is approximately 1.39 million shares valued at 7.22 euros per share. Any standard adjustments may be settled, at the discretion of BasicNet spa, either in cash or through the transfer of treasury shares using the same valuation as the initial consideration.

The treasury shares transferred by BasicNet to the counterparty as part of the initial consideration will be subject to a lock-up period of 36 months from the acquisition date. Partial releases will begin from the second year.

“In addition to the initial consideration, one or two earn-outs of 5 million euros each may be paid, up to a total limit of 10 million euros. These will be due from BasicNet if the Sundek brand's turnover exceeds certain thresholds in any financial year after 2025 and up to December 31, 2030,” the statement reads.

The turnover thresholds for the Sundek brand are set at 40 and 50 million euros. For 2030 only, if the brand's turnover is above 40 million euros but below 50 million euros, the earn-out for exceeding the first threshold will be calculated. This will be done by applying the ratio of the amount exceeding 40 million euros to 10 million euros against the 5 million euro earn-out.

Founded in San Francisco in 1958, Sundek was one of the first brands to shape surfwear, becoming a key player in the emerging Californian surf culture. It was not just technical apparel but a symbol of a lifestyle: freedom, counterculture, music, rebellious spirit and community. In the 1960s, the brand expanded from the coasts of California to Hawaii and then along the East Coast, accompanying and often anticipating the evolution of surfing as a cultural phenomenon. The year 1972 marked an iconic moment with the creation of the Rainbow Boardshorts, featuring quick-drying nylon, seamless closures and the unmistakable rainbow on the back. This garment transcended beachwear to become a hallmark of identity, style and belonging to the surf culture.

The acquisition of Sundek allows BasicNet spa, according to the press release, “to enrich its portfolio with another brand with a great history that fits perfectly into the group. It will cover the beachwear category, which is currently unrepresented. Sundek is a brand that perfectly reflects the qualities required to become part of the Group: history, iconic status, colour and high recognition.”

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