Retail brand owner VF Corp. (NYSE: VFC) and private equity firm Altamont Capital Partners have submitted an offer to buy Billabong International Ltd. (ASE: BBG) for $556 million.

The price works out to $1.10 per share in cash. Billabong's shares closed at $0.90 on Jan. 11.

Billibong has agreed to let VF and Altamont conduct due diligence to evaluate the business.

VF is interested in the Billabong brand, as it’s consistent with its desire to buy in the action sports sector. The company owns the North Face, Wrangler, Timberland, Vans, Lee, 7 For All Mankind, Reef, Nautica, JanSport and other brands.

San Fransico-based Altamont has invested in J.D. Byrider, ModernHealth and Omniplex. In December, the firm invested in Tacala LLC and Boom Foods LLC. 

The offer comes on the heels of many other deals in the retail sector, including TA Associates’ purchase of Dutch LLC, Vida Shoes’ purchase of Andre Assous and Gap Inc.’s (NYSE: GPS) purchase of Intermix Holdco Inc. 

The offer exemplifies the interest companies have in the outdoor-performance wear sector. For more, see "Outdoor Performance Poised to Take Off."

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