New Sector 9 Owner on Plans for the Brand

We followed up with the new owner of Sector 9 to find out more about the acquisition and plans for the brand.

Bravo Sports Corp. bought Sector 9 from Billabong for $12 million earlier this month. Bravo owns a variety of brands including Pro-Tec, Kryptonics, Rad Wheels, One Industries and others.

Bravo CEO Leonardo Pais answered some questions for us.

Why acquire Sector 9?

Bravo Sports CEO Leonardo Pais: In July 2015, we developed a long-term strategic plan with our new shareholders, Transom Capital Group, in order to grow our newly created specialty division.

We outlined specific acquisition criteria and in December 2015 we executed our first acquisition, Pro-Tec, the iconic helmets and protective gear brand.

Our next target was Sector 9 as they have the same iconic brand criteria we were looking for. As part of our strategy, we are looking for category leading brands, not just players.

Longboards are a tough category right now. How do you plan to grow the brand?

Leonardo Pais: As we all know, the longboard market is saturated and is going through a market correction right now.  Sector 9 is a very strong brand that will always keep leading the category.

In the future, there will be fewer players in a more mature industry. Bravo has a very strong core competency in the skateboard business and with our support, we will help Sector 9 continue the strong market position it has earned and deserves.

How does Sector 9 fit into the larger Bravo portfolio?

Leonardo Pais: It’s no doubt that Sector 9 is one of those brands that with the right support and tools is going to become an even stronger company both domestically as well as internationally. 

What most people don’t know is that Bravo is the largest skateboard company in the world but is serving different distribution channels. Sector 9 and Pro-Tec are representing a starting point for a new division in the Bravo business.

Can you provide some more background about the channels that Bravo operates in? Where is the bulk of Bravo’s business at retail conducted?

Leonardo Pais: Bravo Sports is a multi-category, multi-brand company for licensed wheeled goods, including skateboards, scooters and outdoor products.

For skateboard-specific products, Bravo is the largest supplier in the world for three specific channels – mid-tier, sporting goods and mass market.

In addition to these channels, Bravo has a specialty division selling wheels, Pro-Tec protective gear and now skateboards to the specialty retail channels.

Do you see any new channels of distribution for Sector 9? Would Bravo ever segment Sector 9 for different channels or create new products under the Sector 9 name for those channels?

Leonardo Pais: Bravo has no intentions of taking Sector 9 to the mass market.  Sector 9 belongs to the Bravo Specialty Division, which just focuses on core specialty retail channels.

Who will run Sector 9 now? Will the founders remain involved long term?

Leonardo Pais: Co-founder Dennis Telfer will lead the strategic brand side of the business while Dean Hunter will run the day-to-day operations, including manufacturing.  Sector 9 will remain in its current location in San Diego.

At a corporate level, I am in charge of the entire organization as the CEO, while the Bravo senior executive team will be heavily involved in the future strategic growth of the Sector 9 business. 

Do you see an opportunity to combine Sector 9’s backend functions with Bravo’s other brands?

Leonardo Pais: There are definitely synergies within the back end of the company. Bravo is a global company that will support the international growth of the business.

Is Bravo looking for any other acquisition opportunities?

Leonardo Pais: Absolutely, yes. We have very specific criteria to identify new acquisitions in the action sports business. Stay tuned – there will be more to come.