Quiksilver Reaches Agreement to Sell Surfdome to SurfStitch Group
November 11 2014 - 7:30AM
Business Wire
Quiksilver, Inc. (NYSE: ZQK) and SurfStitch Group today
announced that they have reached a definitive agreement for the
sale of Quiksilver’s majority ownership interest in Surfdome, an
online retailer of action sports products, to SurfStitch, an
Australian based online retailer of action sports products.
Quiksilver expects to receive net proceeds of approximately (US)$16
million for its equity interest, loans and other amounts due from
Surfdome. The all-cash transaction, which is subject to SurfStitch
reaching agreement to purchase the minority interest in Surfdome,
is expected to close before the end of the current calendar
year.
As part of the transaction, Surfdome will continue to carry
Quiksilver, Roxy and DC products under a two-year supply
agreement.
“Our business with Surfstitch has been growing, and we view both
Surfdome and Surfstitch as key retail partners,” said Andy Mooney,
chairman and chief executive officer of Quiksilver, Inc. “The sale
of Surfdome is in keeping with our strategy to focus on our core
Quiksilver, Roxy and DC brands. Moreover, this will complete our
planned exits from non-strategic businesses, which have included
Mervin Manufacturing, Hawk Designs, VSTR, Summer Teeth and
Moskova.”
Justin Cameron, SurfStitch Group chief executive officer, said,
“We are excited to welcome the Surfdome team into the SurfStitch
Group. Having watched the successful growth of Surfdome’s business
in the UK and broader European market with interest since our
launch in Europe, we always hoped to find an opportunity to combine
our businesses and leverage the strong operational synergies that
exist.”
Surfdome generated sales of approximately (US)$60 million for
the trailing twelve months ended October 2014.
About SurfStitch Group:
SurfStitch Group founded by Justin Cameron and Lex Pedersen in
Sydney’s (Australia) Northern Beaches in 2007, has grown to become
one of the world’s largest online action sports retailers.
Operating under the SurfStitch, Swell and, pending completion of
the transaction, Surfdome banners, SurfStitch Group employs over
500 staff globally, working with 900+ of the world’s leading action
sports and fashion brands. SurfStitch delivers to nearly 100
countries with warehouse operations in Australia, France, UK and
the USA.
About Quiksilver:
Quiksilver, Inc., one of the world’s leading outdoor sports
lifestyle companies, designs, produces and distributes branded
apparel, footwear and accessories. The Company’s apparel and
footwear brands, inspired by a passion for outdoor action sports,
represent a casual lifestyle for young-minded people who connect
with its boardriding culture and heritage. The Company’s
Quiksilver, Roxy, and DC brands have authentic roots and heritage
in surf, snow and skate. The Company’s products are sold in more
than 100 countries in a wide range of distribution, including surf
shops, skate shops, snow shops, its proprietary Boardriders Club
shops and other Company-owned retail stores, other specialty
stores, select department stores and through various e-commerce
channels. The Company’s corporate headquarters are in Huntington
Beach, California.
Forward-looking statements:
This press release contains forward-looking statements
including, but not limited to, statements regarding the expected
closing of the sale of Quiksilver’s equity interest in Surfdome and
the post-transaction commercial relationship between Quiksilver and
Surfdome. These forward-looking statements are subject to risks and
uncertainties, and actual results may differ materially. The
Company undertakes no obligation to update these statements, which
are made only as of the date of this press release. For the factors
that could cause actual results to differ materially from
expectations, please refer to the Company’s SEC filings and
specifically the sections titled “Risk Factors,” “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” and “Forward-Looking Statements” in the Company’s
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
NOTE: For further information about Quiksilver, Inc., please
visit our website at www.quiksilverinc.com. We also invite you to
explore our brand sites, www.quiksilver.com, www.roxy.com and
www.dcshoes.com.
Quiksilver, Inc.Investor RelationsRobert Jaffe,
424-288-4098zqk@quiksilver.com