Transaction Part of Company’s Plan to Divest Non-Core Businesses
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Oct. 23, 2013--
Quiksilver, Inc. (NYSE: ZQK) today announced that it has reached a
definitive agreement to divest its snowboard subsidiary, Mervin
Manufacturing, Inc., to Extreme Holdings, Inc., an entity advised by
Altamont Capital Partners. The all cash transaction is expected to close
within several weeks and subject to certain customary closing conditions.
Mervin is a leading designer and manufacturer of snowboarding products.
Its brands include Gnu and Lib Tech. As part of the transaction, Mervin
will continue to manufacture snowboards for Quiksilver’s Roxy brand,
under a separate license agreement.
In May 2013, Quiksilver announced a multi-year profit improvement plan
designed to accelerate the company’s three fundamental strategies of
strengthening brands, growing sales and driving operational
efficiencies. The plan’s initiatives include divesting non-core
businesses in order to focus on prioritizing the company’s three
Quiksilver said it intends to use the net proceeds of the transaction to
reduce amounts drawn on its credit facilities and make investments in
its emerging markets. Mervin generated sales of approximately $32
million for the trailing twelve month period.
Steve Brownlie, Principal at Altamont, said, “Mervin Manufacturing
represents an opportunity to invest in a special company with two of the
industry’s finest action sports brands in Lib Tech and GNU along with a
passionate team, including first-rate leadership in Ryan, Mike and Pete.
We look forward to building on Mervin's strong brand position of
authenticity, premium products and service and its history of driving
innovation that advances the sports of snowboarding, skiing,
skateboarding and surfing.”
William Blair served as exclusive financial advisor to Quiksilver in
connection with this transaction.
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San
Francisco Bay Area. Altamont is focused on investing in businesses where
it can partner with leading management teams to help the companies reach
their full potential. The firm's principals have significant experience
building business success stories across a range of industries.
Quiksilver, Inc., one of the world’s leading outdoor sports lifestyle
companies, designs, produces and distributes branded apparel, footwear
and accessories. The company’s apparel and footwear brands, inspired by
a passion for outdoor action sports, represent a casual lifestyle for
young-minded people who connect with its boardriding culture and
heritage. The company’s Quiksilver, Roxy, and DC brands have authentic
roots and heritage in surf, snow and skate. The company’s products are
sold in more than 90 countries in a wide range of distribution,
including surf shops, skate shops, snow shops, its proprietary
Boardriders Club shops and other company-owned retail stores, other
specialty stores, select department stores and through various
e-commerce channels. Quiksilver’s corporate headquarters are in
Huntington Beach, California.
This press release contains forward-looking statements including, but
not limited to, those relating to the expected closing of the sale of
Mervin Manufacturing, Inc. and use of the proceeds therefrom. Quiksilver
cautions that these statements are qualified by important factors that
could cause actual results to differ materially from those presented or
implied in the forward-looking statements. These statements are based on
Quiksilver’s current plans and expectations and involve risks and
uncertainties that could cause future activities and results of
operations to be materially different from those set forth in or implied
by the forward-looking statements. Quiksilver undertakes no obligation
to update these statements, which speak only as of the date of this
press release. For the factors that could cause actual results to differ
materially from expectations, please refer to Quiksilver’s filings with
the Securities and Exchange Commission and specifically the sections
titled “Risk Factors,” “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Cautionary Note
Regarding Forward-Looking Statements” in Quiksilver’s Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q.
Source: Quiksilver, Inc.