Blue Tomato, a well-known European action sports retailer based out of Austria, has been purchased by U.S. based Zumiez today, June 19, 2012 for 59.5 million Euros, with an agreement for an additional 22.1 million Euros contingent on future payments based on performance over the next 3 years.
Part of a move to expand into Europe, as many action sports brands have been doing over the past few years based on an over-saturated U.S. market for action sports inspired apparel and footwear, Zumiez latest decision is in line with a general trend. However the volatility of the European economy will play a significant role in the near future.
Blue Tomato was founded by former European Snowboard champion Gerfried Schuller in 1988. Blue Tomato operates one of Europe’s largest action sports ecommerce websites www.blue-tomato.com, which is available in 14 different languages. Additionally, the company operates 5 stores in Austria. Blue Tomato sells an extensive and diverse mix of branded snow and skate hard goods, apparel, footwear, and accessories across Europe.
Gerfried Schuller commented, “When I decided to sell the company I could not imagine a better fit for how we operate than Zumiez. We have built the leading action sports retail company in Europe and now we will be a part of the leading action sports retailer in the United States. Starting today, Zumiez and Blue Tomato are ready to begin a new journey to become the world’s leader in action sports retailing.” Zumiez has also raised its guidance for the second quarter of 2012 to $134-$136 million in total sales, including $2 million from Blue Tomato.
The deal with Blue Tomato is expected to be completed by July 1, 2012.
