Quiksilver To Sell Rossignol Brand To Chartreuse & Mont Blanc
Quiksilver yesterday received a binding offer for the acquisition of 100% of its Rossignol Group from Chartreuse & Mont Blanc, which is headed by former Rossignol CEO Bruno Cercley. The proposed transaction is valued at more than US$147M, consisting of $110M in cash and a $37M seller's note (Quiksilver). In L.A., Andrea Chang notes the $147M is "less than half what Quiksilver paid just three years ago to acquire Rossignol." If the deal is approved, "the acquisition would mark the end of Quiksilver's short-lived and tumultuous venture into the ski-equipment business and would return the [company] to its roots as an apparel and footwear maker." Quiksilver said that it "would use the proceeds from the sale of the Rossignol, Dynastar, Look and Lange brands to repay debt and to focus on its core Quiksilver, Roxy and DC brands." The deal is "expected to close later this year." Chang notes Rossignol has become a "financial drag" for Quiksilver and last year the company "began cutting costs associated with Rossignol and entertained the possibility of selling the brand." L.A.-based Wedbush Morgan Securities analyst Jeff Mintz said, "It was a problem from the beginning. It's a very different business, the hard-goods business compared to apparel. ... The truth is that it was a bit of a stretch for Quiksilver" (L.A. TIMES, 8/28). At press time, shares of Quiksilver were trading at $8.15, down 5.67% from yesterday's close of $8.64 (THE DAILY).
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