Globe International buys 50% stake in Salty Crew
Australian surf and skate firm Globe International has purchased a 50% stake in American surf brand Salty Crew, as the Solomon Lew-backed brand looks to penetrate the tough US market.
Melbourne-based Globe took over the operational and financial functions of Salty Crew from January 1, according to the Australian Financial Review, a decision backed by retail mogul Lew -- who also runs Premier Retail, the retail part of his Premier Investments outfit.
Lew owns just 5.9% of Globe International, with 69% still owned by Globe founders and brothers, Peter and Stephen Hill -- both former professional skateboarders, and Matt Hill, Globe's current chief executive.
The chief executive said Salty Crew would act as new growth arrow for Globe to pierce North America, even though it was still a young brand, reported AFR.
While sales of Globe products in Australia rose 16% for the first half of 2016-17, the U.S. market has been a hard slog, where sales of skateboard hard goods dropped by 26% in North America. Both Europe and North America had an adverse affect on total revenues, which witnessed an 11% drop to AU$71 million (US$54.41 million), while net profit after tax was 14% lower at $2.5 million.
Founded in 2014 by Milo Myers, the California-based Salty Crew is known for its neo-surf aesthetic creating authentic surf, fishing, diving and sailing gear.
Salty or "Salvaging A Lifestyle for Tomorrow's Youth", has attracted the likes of professional surfer CJ Hobgood, who is an official ambassador for the U.S. brand.
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