Quiksilver Inc. has sold its snowboarding subsidiary, Mervin Manufacturing Inc., to Extreme Holdings Inc.
Terms of the agreement were not disclosed. The all-cash transaction is expected to close in several weeks and is subject to certain customary closing conditions, the company said. Net proceeds from the Mervin sale will be used to reduce the amounts drawn on its credit facilities and “make investments in its emerging markets,” the company said.
After the sale, Mervin will continue to manufacture snowboards for Quiksilver’s Roxy brand under a separate license.
The company said in May it has a multiyear profit improvement plan that includes the divestiture of noncore businesses so it could focus on the firm’s three flagship brands. The three brands are Quiksilver, Roxy and DC.