An Australian shoemaker plans to acquire El Segundo-based Kubic Marketing Inc., one of the world's largest skateboard companies, in the latest effort to push the edgy sport of skateboarding into the mainstream and commit deeper corporate dollars to fuel its growth globally.
Globe International Ltd. plans to pay up to $46 million to buy Kubic, parent of bad-boy brand World Industries, the companies said Friday.
The acquisition will move another large corporation into Southern California's once tightly knit youth market scene, while adding another dose of corporate respectability to a sport that was born of rebellion. Earlier this year, Beaverton, Ore.-based athletic shoe giant Nike Inc. purchased Hurley International, a Costa Mesa-based youth apparel designer that is popular with skateboarders and surfers.
Globe, which already distributes a stable of youth brands in Australia, will issue about 47 million shares to raise money for the purchase. The acquisition is expected to spur production of apparel and shoes bearing Kubic brands, which include Blind, Darkstar, Tensor and enjoi. It also allows Globe to move into skateboard and hard goods in a major way, insiders said.
"It's a big deal," said Miki Vuckovich, editor of Transworld Skateboarding magazine. "It's a great opportunity for [Globe] to own several of the top brands they've been distributing. They can now control the licensing, distribution and how those brands are managed globally."
The deal also will strengthen the Kubic brand and could make life tougher for companies that make skate shoes, including Santa Fe Springs-based Vans Inc. and Sole Technology Inc. in Lake Forest, industry insiders said.
Management will remain in place at Kubic's two divisions, World Industries and Dwindle Distribution, and no layoffs are anticipated, the company said. Other than planned expansion, nothing is likely to change, said Robert Valerio, Dwindle's president.
"They're still going to appeal to youths' interest in rebelling," he said. "We're just happy to have a larger parent company that can fund our growth."
"We are joining up with one of the largest shoe companies in skateboarding," Valerio added. "That means together we have the opportunity to be one of the leaders in the action sports industry for the entire world."
The popularity of skateboarding has grown steadily in recent years, swiping some of the sheen from the surf wear apparel market.
