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Some good news from Quiksilver today as the company announced it has completed the sale of Rossignol.
The company sold Rossignol to Chartreuse & Mont Blanc for 40 million Euros. Originally, the sale price was 100 million Euros.
Analysts tell me the important thing isn't the sale price, but that Quiksilver is rid of the Rossignol business, which has been draining cash and other resources from the core company.
The company will use the sale proceeds to help pay down debt.
In the release, Bob McKnight said the company can now focus on its core brands, Quiksilver, Roxy and DC.
Here's the release:
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Quiksilver, Inc. (NYSE:ZQK - News) today announced that it had closed the sale of the "Rossignol Group" to Chartreuse & Mont Blanc. The transaction resulted from Quiksilver's initiative, announced in January 2008, to sell Rossignol in order to reduce its exposure to the winter sports equipment manufacturing business. The sale, which was effective as of November 12, 2008, carried a transaction value of €40 million, comprised of €30 million in cash and a €10 million Seller's Note. Net proceeds will be used to reduce indebtedness.
Robert B. McKnight, Jr., Chairman of the Board, Chief Executive and President of Quiksilver, Inc., commented, "The completion of this sale represents the culmination of our efforts to eliminate our exposure to hardgoods manufacturing. We're delighted that we can now return to our roots, do what we do best and once again fully concentrate our efforts on our core apparel and footwear brands Quiksilver, Roxy and DC."
In December 2007, Quiksilver sold the Roger Cleveland Golf Company to SRI Sports Limited in a transaction valued at $132.5 million. The "Rossignol Group" included Roger Cleveland Golf when Quiksilver acquired it in July 2005.
Quiksilver, Inc. was advised by JPMorgan on both sale transactions.