Nike has reached an agreement to sell the Hurley brand to Bluestar Alliance. The terms of the transaction are not being disclosed, but the sale is expected to be completed in December.
"We appreciate how [Bob Hurley, founder, Hurley] and the Hurley team have built Hurley into the world's most innovative surf brand," says Michael Spillane, president, categories and product, Nike. "As we drive increasingly more targeted investment and focused growth through Nike's consumer direct offense, this change in ownership will allow sharper focus and intentional investment in Hurley's growth potential."
“We have always admired the Hurley brand as it has maintained its leadership role and premium positioning in the surf world,” says Joey Gabbay, chief executive officer, Bluestar Alliance. “This is a transformative acquisition for Bluestar as Hurley’s international footprint will enhance Bluestar’s reach around the world. We look forward to building upon the existing Hurley network and expanding to additional countries with the deep relationships that already exist within the Bluestar portfolio of brands. We see Hurley continuing to evolve into a 360-degree lifestyle brand, with action sports playing a key role.”
Financial service company B. Riley Financial has invested in Bluestar Alliance. B. Riley has plans to grow licensing revenue from the brand holdings in partnership with Bluestar Alliance by leveraging its extensive relationships and strategic partnerships in the retail sector. The company intends to pursue future acquisitions of consumer brands, intellectual property, trademarks and licenses, and participate in select transactions as an equity owner.
“The shifting retail landscape has created more opportunities to acquire licenses for established and up-and-coming brands at an attractive valuation,” says Bryant Riley, chairman and co-chief executive officer, B. Riley Financial. “Our significant investment in these seven brands provides balance to our more volatile businesses, while also supporting our dividend strategy. Through the formation of this brand investment portfolio, combined with our ongoing partnership with Bluestar Alliance and our existing ownership stake in Bebe stores, we believe we have credibly established ourselves as a significant financing source and investment partner to brand management companies.”