By Rebecca Thurlow
SYDNEY--U.S.-based Saban Brands has made its second acquisition
of an Australian beachwear label this year, continuing a trend
among cashed up foreign investors to mine the country for brands
they hope will appeal to fashion conscious shoppers from Los
Angeles to Shanghai.
Saban Brands, which owns the Paul Frank and Macbeth labels, said
Tuesday it purchased Piping Hot Surfwear, pioneered by two surfers
in a small town on Australia's south coast in 1975, from Managing
Director Mark Johannsen. Saban didn't say how much it paid for the
label, which for nearly two decades has been sold exclusively
through Target, a budget department store owned by Australian
conglomerate Wesfarmers.
"It's unique for a brand to be rooted in rich history and
culture, and simultaneously maintain such broad appeal and
accessibility," said Daniel Castle, Managing Director of Strategic
Business Development at Saban.
In January, Saban bought Mambo, a 30-year-old Australian label
that has often thrived on the notoriety of its designs, including
T-shirts featuring irreverent images such as a flatulent dog and a
depiction of Jesus Christ doling out beer.
Cash-rich foreign investors have been eager to snap up
Australia's well known surfwear and bikini brands in the global
swimwear market, which is estimated to have totaled US$22.3 billion
last year. Saban's Australian spending spree comes hot on the heels
of an investment in swimwear maker Seafolly by the private-equity
unit of LVMH Moët Hennessy Louis Vuitton in December, and one by
U.S. hedge funds led by Centerbridge Partners LP in the troubled
Billabong International Ltd. in January.
Piping Hot began when local surfboard shapers Fred Pyke and Rod
Brooks, surfing at Bells Beach in Victoria state in thick heavy
wetsuits in icy water, envisaged a better product with more warmth
and flexibility. By the late 70s, some of the world's best surfers
including Larry Bertlemann and Nat Young were appearing in magazine
advertisements and at competitions promoting the Piping Hot brand.
The label has hosted international sports events including the
Piping Hot Surf Festival at Bells Beach.
By the mid-80s, Piping Hot had opened the country's largest surf
shop in the Victorian seaside township of Torquay and branched into
clothing, accessories and surfboards.
With surf wear becoming mainstream and the market experiencing
strong growth and increased competition in 1990s, Piping Hot looked
for a way to differentiate itself and agreed to an exclusive
distribution deal with Target in 1998.
Write to Rebecca Thurlow at rebecca.thurlow@wsj.com
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