Quiksilver, it would appear, has finally found its way out from under the misguided deal it entered into in 2005 to acquire the Rossignol business that also included Cleveland Golf. After making a deal to sell off Cleveland to the parent company of Srixon late last year, Quik was left with only Rossignol to get off the books. It appears the road to that happy date might finally have been lit for Quiksilver as the company reported last week that it had received a binding offer for the acquisition of 100% of the Rossignol Group.
The proposed offer of 100 million is comprised of 75 million in cash and a 25 million Sellers Note and was made by Chartreuse & Mont Blanc, which is headed by Bruno Cercley, a former CEO of Rossignol. Chartreuse & Mont Blanc is majority owned by Macquarie Group and, interestingly, is supported by a non-voting minority interest by Jarden Corporation, owner of K2 Inc, one of Rossignols main competitors. The transaction includes the sale of the Rossignol, Dynastar, Look, and Lange brands of winter sports equipment and apparel and is consistent with Quiksilvers intention, announced in January 2008, to sell the Rossignol Group to reduce its exposure to the winter sports equipment manufacturing business.
Bob McKnight, Jr., chairman, CEO and president of Quiksilver, Inc., commented that the company can now fully concentrate their efforts on the Quiksilver, Roxy and DC. Brands. ZQK plans to use the net proceeds from the sale to repay existing indebtedness. The deal is expected to close in this fall following regulatory approval and completion of required employee consultation procedures in Europe.
