Quiksilver Expands Global Control
In a deal worth $93 million, Huntington Beach, Calif.-based Quiksilver, Inc. recently announced plans to buy out its Australian and Japanese licensees to expand global control over its brand. The buyout of the licensees—Australia’s Ug Manufacturing Co. and Quiksilver Japan—is the fifth acquisition since March 2000 for the casual and sports apparel manufacturer. The acquisition announcement was accompanied by a sharp increase in revenue and earnings projections for next year. The revenue forecast increased from $770 million to at least $840 million, while the earnings projections moved from $1.71 per share to as high as $1.79 a share. The primary sellers of the licensees are the original co-founders of the brand, John Law and Alan Green. The pair will serve as advisers to Quiksilver and be among the company’s largest shareholders.
