Australia's surfing RTW retailer, Billabong has announced plans of acquiring a California-based "progressive" clothing label, RVCA, for an amount yet to be disclosed.

Billabong stated on Monday it has made a conditional deal to buy the "progressive apparel brand" of California, which was established around ten years ago, in 2000.

Billabong says that RVCA is "an art and design-driven brand focusing on a diverse range of activities that both represent and inspire youth".

Derek O'Neill, CEO of Billabong, added that RVCA is "one of southern California's most exciting emerging brands".

"RVCA is not defined by any single sport or culture. It represents a community of culturally aware youth and is inspired by a diverse range of interests, each of which is underpinned by an original, highly creative design element," the Billabong boss said.

"It is a brand that has developed a very strong presence in the United States, particularly in southern California, on the strength of its fashion-forward ranges in categories including art-driven t-shirts, denim, wovens, boardshorts and, more recently, its girls line."

Billabong has said that the revenue of RVCA is obtained mostly from the US market, with moves to expand to other major markets such as Australia and Europe, in the company's starting stages.

Pat Tenore, the founder of RVCA, and his administration team would continue driving the growth and development of the clothing label.

Billabong disclosed that it projects RVCA would add about two per cent to the total Billabong revenue, and would be EPS (earning per share) neutral in the fiscal year 2010-11.

"The purchase price, which is not considered material, remains undisclosed," Billabong stated.

The deal on the acquisition of assets is subject to typical conditions precedent. Both Billabong and RVCA expects the conditions will be satisfied soon, Billabong announced.