Quiksilver Inc. has inked a deal to sell its majority interest in online action sports retail site Surfdome to SurfStitch Group.
SurfStitch is an Australian-based online retailer of action sports products. The all-cash transaction is subject to SurfStitch reaching an agreement to acquire the minority interest in Surfdome. Presuming all agreements are signed, the deal would close before the end of the current year.
Quiksilver said it expects to receive net proceeds of $16 million for its equity interest, loans and other amounts due from Surfdome.
As part of the deal, Quiksilver, Roxy and DC products will continue to be sold on Surfdome via a two-year supply agreement.
Andy Mooney, chairman and chief executive officer of Quiksilver, said the sale of Surfdome was in keeping with the company’s strategy to focus on its core brands, Quiksilver, Roxy and DC. The sale completes the company’s “planned exits from nonstrategic businesses, which have included Mervin Manufacturing, Hawk Designs, VCTR, Summer Teeth and Moskova.”