Quiksilver to Sell Ski Brand
Citing warm weather, pressure from shareholders and a gloomy economy, Quiksilver has announced its intent tosell Rossignol, its French ski apparel and hardgoods brand. Acquired in 2005 for $320 million in cash and stock, the snow brand was estimated by Quiksilver to have a carrying value of $166 million for the financial year that ended Oct. 31, 2007.
The surfwear company has hired investment bank JPMorgan to oversee the sale of Rossignol. Robert Samuels of JPMorgan said the potential sale of Rossignol could help reduce the company’s nearly $1 billion debt burden. JPMorgan also advised the Huntington Beach, Calif.–based surf giant during its sale of the Cleveland Golf Co. in October. Cleveland Golf was acquired as part of the Rossignol deal and sold for $132.5 million to Japanese manufacturer SRI Sports Ltd.
In June 2007, the company announced its intent to reduce its exposure to the hardgoods manufacturing business. Rossignol, along with Quiksilver’s three other winter sports brands, represents 16 percent of the company’s total revenue. Potential buyers have not been named.—Erin Barajas
