Walmart on Tuesday said it was buying a chain of skateboard retailers for $3.5 billion, as part of a $2 billion buyout of online retail giant Target Corp. The acquisition of Skateboard.com by Walmart was expected to close in the second quarter.
The deal includes Target’s popular skateboarding site, Skateboards.com, as well as a number of skateboarding related brands, such as Skateboarding.com and Skate Boards.com.
The company said the acquisition would create a global marketplace for skateboarding apparel and accessories.
Walmart CEO Doug McMillon said the Skate Board deal was designed to bring the retail experience to millions of shoppers across the world.
“This transaction will give us the resources and the ability to bring our most valued brands to more people, including shoppers who have never used skateboards before,” McMillon told reporters.
“I know we’re going to be able to deliver that same shopping experience across the board.”
Walmart, which had been shopping for a competitor in skateboarding, had been looking for an online retailer to compete with Target.
Walmart has long been looking to tap into the growing popularity of skateboards by offering products like board bags, board shoes and board helmets, which can be used for a variety of purposes.
In addition to skateboards and skateboards apparel, Walmart also sells skateboard equipment, board games, accessories, toys and apparel.
Walmart’s $3 billion deal includes a $600 million cash payment in cash and stock, as it looks to close the deal in the third quarter.
Target, which has struggled in the skateboarding market, recently closed a deal with an online skateboarding retailer called Shox.