After an eight-month search for a buyer of its Rossignol Group division, Quiksilver Inc. is on its way out of the ski business.
This story first appeared in the August 28, 2008 issue of WWD. Subscribe Today.
The Huntington Beach, Calif.-based board sports brand said Wednesday that it has received a binding offer from Chartreuse & Mont Blanc to purchase Rossignol, the French ski and snowboard firm, for 100 million euros, or $146.7 million at current exchange.
Chartreuse & Mont Blanc is headed by former Rossignol chief executive officer Bruno Cercley and is majority owned by Macquarie Group and supported with a nonvoting minority interest by Jarden Corp.
The deal includes the Rossignol brand as well as the Dynastar, Look and Lange lines of winter sports equipment and apparel.
Quiksilver in January revealed its intention to sell Rossignol, which it acquired for approximately $320 million in cash and stock in 2005, citing a desire to reduce its exposure to the winter sports business. Quiksilver expects the deal to close this fall and will use the proceeds to repay existing debt.
“This offer is a compelling transaction for Quiksilver,” said Robert McKnight Jr., chairman, ceo and president of the company. “Once completed, we can fully concentrate our efforts on our core apparel and footwear brands.”
Investors seemed to agree. Quiksilver’s shares rose 88 cents, or 11.3 percent, to close Wednesday’s New York Stock Exchange session at $8.64.
In December, Quiksilver sold Cleveland Golf to SRP Sports Ltd., based in Japan, for $132.5 million.