Quiksilver Inc. reached a definitive agreement to sell its majority stake in online retailer Surfdome to Surfstitch of Australia for net proceeds of approximately (US)$16 million for its equity interest, loans and other amounts due from Surfdome. The all-cash transaction, which is subject to SurfStitch reaching agreement to purchase the minority interest in Surfdome, is expected to close before the end of the current calendar year.
As part of the transaction, Surfdome will continue to carry Quiksilver, Roxy and DC products under a two-year supply agreement.
Our business with Surfstitch has been growing, and we view both Surfdome and Surfstitch as key retail partners, said Andy Mooney, chairman and chief executive officer of Quiksilver, Inc. The sale of Surfdome is in keeping with our strategy to focus on our core Quiksilver, Roxy and DC brands. Moreover, this will complete our planned exits from non-strategic businesses, which have included Mervin Manufacturing, Hawk Designs, VSTR, Summer Teeth and Moskova.
Justin Cameron, SurfStitch Group chief executive officer, said, We are excited to welcome the Surfdome team into the SurfStitch Group. Having watched the successful growth of Surfdomes business in the UK and broader European market with interest since our launch in Europe, we always hoped to find an opportunity to combine our businesses and leverage the strong operational synergies that exist.
Surfdome generated sales of approximately (US)$60 million for the trailing twelve months ended October 2014.
SurfStitch Group founded by Justin Cameron and Lex Pedersen in Sydneys (Australia) Northern Beaches in 2007, has grown to become one of the worlds largest online action sports retailers. Operating under the SurfStitch, Swell and, pending completion of the transaction, Surfdome banners, SurfStitch Group employs over 500 staff globally, working with 900+ of the worlds leading action sports and fashion brands. SurfStitch delivers to nearly 100 countries with warehouse operations in Australia, France, UK and the USA.
Quiksilver, Inc., one of the worlds leading outdoor sports lifestyle companies, designs, produces and distributes branded apparel, footwear and accessories. The Companys 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 Companys Quiksilver, Roxy, and DC brands have authentic roots and heritage in surf, snow and skate. The Companys products are sold in more than 100 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. The Companys corporate headquarters are in Huntington Beach, California.