Surfdome will continue to carry Quiksilver, Roxy and DC
Surfersvillage Global Surf News, 11 November, 2014 - Huntington Beach - Quiksilver, Inc. 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.