According to golfweek.com, the
sale of Cleveland Golf by Quiksilver appears imminent. Industry sources
say Quiksilver, which acquired Cleveland in 2005 as part of its
Rossignol acquisition, is in the final stages of selling the golf
equipment maker for roughly $60 million to $70 million.
Some analysts said the price is a bargain, noting Cleveland likely is
worth at least $100 million, but they add an expedient sale even at a
discount is in Quiksilvers best interests. Weakness in hardlines was
largely responsible for Quiksilver's loss in the most recent quarter.
Although Quiksilver has not discussed any potential sale, sources told
Golfweek the company had hired J.P. Morgan Chase to find a buyer.
Golfweek speculated that the most likely buyers would be
TaylorMade-Adidas Golf, Puma or a management led buyout group led by
Cleveland president Greg Hopkins.