Clothing retailer Quiksliver (ZQK) completed its sale of Rossignol for $40M Euros. Sales of Rossignol apparel and winter accessories hadn’t been performing as well as the company expected over the past 2 years since Acquiring the french company. To cut costs and shore up budget problems, Quiksilver decided to sell Rossignol and use the capital for other purposes.
Here’s the full story:
HUNTINGTON BEACH, Calif., Nov 13, 2008 (BUSINESS WIRE) — Quiksilver, Inc. (ZQK, Trade ) today announced that it had closed the sale of the “Rossignol Group” to Chartreuse & Mont Blanc. The transaction resulted from Quiksilver’s initiative, announced in January 2008, to sell Rossignol in order to reduce its exposure to the winter sports equipment manufacturing business. The sale, which was effective as of November 12, 2008, carried a transaction value of 40 million, comprised of 30 million in cash and a 10 million Seller’s Note. Net proceeds will be used to reduce indebtedness.
Robert B. McKnight, Jr., Chairman of the Board, Chief Executive and President of Quiksilver, Inc., commented, “The completion of this sale represents the culmination of our efforts to eliminate our exposure to hardgoods manufacturing. We’re delighted that we can now return to our roots, do what we do best and once again fully concentrate our efforts on our core apparel and footwear brands Quiksilver, Roxy and DC.”
In December 2007, Quiksilver sold the Roger Cleveland Golf Company to SRI Sports Limited in a transaction valued at $132.5 million. The “Rossignol Group” included Roger Cleveland Golf when Quiksilver acquired it in July 2005.
