-- Quiksilver, Inc. Announces Sale of Cleveland Golf for $132.5 Million --.- Reduces Exposure to Hardgoods Businesses - - Net Proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to be Used to Repay Indebtedness - HUNTINGTON BEACH Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , Calif. -- Quiksilver, Inc. (NYSE NYSE See: New York Stock Exchange : ZQK) today announced that it has reached a definitive agreement to sell 100% of the stock of its Cleveland Golf Cleveland Golf is an American golf company based in Huntington Beach, California. Cleveland is a premier golf brand. Cleveland is also one of the most popular brands on the PGA tour. Company, Inc. subsidiary to SRI Sports Limited, based in Japan. The transaction value is $132.5 million and the transaction is expected to close during the fiscal quarter ending January 31, 2008. Net proceeds from the sale will be used to repay existing indebtedness. Quiksilver originally acquired a portion of the interest in Cleveland in its July 2005 acquisition of the Rossignol Group. The remaining interest was acquired in a separate transaction in September 2007. This transaction resulted from Quiksilver's initiative, first announced in June 2007, to explore strategic alternatives to reduce its exposure to the hardgoods manufacturing businesses. Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, "We are very pleased to have reached a compelling transaction with SRI Sports. While we believe that Cleveland is the best up-and-coming brand in the golf market with significant growth opportunities, it is not a strategic asset for us as we strive to maximize our core businesses and brands." Bernard Mariette, President of Quiksilver, Inc., commented, "We believe this transaction is a key strategic action for our company that will drive immediate value and enable us to reduce both our exposure to the hardgoods space and our degree of leverage. We are pleased to turn over the leadership of Cleveland to such a capable and well-respected company and believe that this transaction is a clear win for everyone involved." Ryochi Sawada, Chairman of the Board of SRI Sports Limited, commented, "We are very excited to add the Cleveland brand and business to our operations. Cleveland has a clear position of dominance in the important wedge market and a fast-growing presence in drivers and irons. We believe that this business will prove highly complementary to our own. We are looking forward to demonstrating Cleveland's full potential to the market and believe that the business can benefit greatly from our stewardship." Greg Hopkins Greg Hopkins (November 16, 1971) is a former Arena Football League wide receiver/linebacker with the Albany Firebirds and the Los Angeles Avengers. High school career , President of Cleveland Golf Company, Inc, commented, "We are excited by the many positive aspects of this deal, including the combination of a great brand in golf with a new organization that is completely and solely devoted to the sport. Significantly, their operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. is set up to anticipate and respond to the seasonality and other specific requirements of the golf market. We believe that this singular focus will benefit the entire Cleveland organization in a number of ways. Each of the three companies involved - Cleveland Golf, Quiksilver, and our new parent SRI Sports benefit in significant ways as this transaction will positively effect the futures of all three companies." Commenting on Quiksilver's remaining hardgoods brands, Mr. Mariette continued, "We remain fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully to our vision to transform Rossignol to a global lifestyle brand and therefore to the continued ownership of the related hardgoods assets." Mr. McKnight added, "We are continuing to evaluate ways to reduce our exposure to risk in some of our non-core winter equipment businesses, including Dynastar, Lange, Look, Kerma and Risport which, like Cleveland Golf, were acquired in 2005 as part of the Rossignol Group." Quiksilver, Inc. was advised by JPMorgan. About Quiksilver Quiksilver, Inc. (NYSE:ZQK) is the world's leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, wintersports, footwear, accessories and related products. The Company's apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage, while its wintersports brands symbolize a long standing commitment to technical expertise and competitive success on the mountains. The reputation of Quiksilver Inc.'s brands is based on different outdoor sports. The Company's Quiksilver, Roxy, DC Shoes DC Shoes is an American based footwear company in Vista, CA founded in 1993 which specializes in shoes for skateboarding as well as snowboarding boots and outerwear. The company manufactures footwear for all types of extreme sports, including skateboarding, snowboarding, BMX, and Hawk brands are synonymous with synonymous with adjective equivalent to, the same as, identical to, similar to, identified with, equal to, tantamount to, interchangeable with, one and the same as the heritage and culture of surfing, skateboarding skateboarding Form of recreation, popular among youths, in which a person rides standing balanced on a small board mounted on wheels. The skateboard first appeared in the early 1960s on paved areas along California beaches as a makeshift diversion for surfers when the ocean and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani. The Rossignol, Dynastar, Lange, Look and Kerma brands are leaders in the alpine ski Alpine Ski is an Alpine skiing arcade game, released by Taito in 1981. Description The player controls a skier, who can move left, right, or increase forward speed. market, and the Company makes snowboarding equipment under its Rossignol, Dynastar, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. Gotcha (jargon, programming) gotcha - A misfeature of a system, especially a programming language or environment, that tends to breed bugs or mistakes because it both enticingly easy to invoke and completely unexpected and/or unreasonable in its outcome. is the Company's surf-based European brand addressing street fashion. The Company's products are sold in over 90 countries in a wide range of distribution, including surf shops, ski shops, skateboard shops, snowboard shops, its proprietary Boardriders Club shops, other specialty stores and select department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. . Quiksilver's corporate and Americas' headquarters are in Huntington Beach, California Huntington Beach is a seaside city in Orange County in southern California. As of the 2000 census, the city population was 189,594. It is bordered by the Pacific Ocean on the west, by Seal Beach on the north, by Costa Mesa on the south, by Westminster on the northeast, and by , while its European headquarters are in St. Jean de Luz and St. Jean de Moirans, France, and its Asia/Pacific headquarters are in Torquay, Australia. About SRI Sports Limited SRI Sports is a leading, listed sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport company that manufactures and sells golf and tennis equipment centered on the Dunlop and Srixon brands, with Fiscal 2006 consolidated sales of approximately US $470 million. Forward looking statements: This press release contains forward-looking statements including but not limited to statements regarding the company's financial forecast, earnings and revenue guidance and the success of the Rossignol integration activities. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver's SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled "Forward-Looking Statements" in Quiksilver's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at www.quiksilver.com, www.roxy.com, www.dcshoecousa.com, www.quiksilveredition.com, www.hawkclothing.com, www.rossignol.com, and www.dynastar.com |
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