Quiksilver Reaches Agreement to Sell Surfdome to SurfStitch Group
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.
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.
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.
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