Is Quiksilver’s stock price really going to drop below the one buck line today? Because with twenty minutes to go it’s hovering at $1.25. But it got an immediate 18 cent bounce in after hours trading. . . wonder what’s up?
[Link: Yahoo Finance]
Quiksilver’s November 17 Chart
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Huntington Beach, California, November 13, 2008 — Quiksilver, Inc. (NYSE:ZQK) today announced that it had closed the sale of the “Rossignol Group” to Chartreuse & Mont Blanc. The transaction resulted from Quiksilver’s initiative, announced in January 2008, to sell Rossignol in order to reduce its exposure to the winter sports equipment manufacturing business. The sale, which was effective as of November 12, 2008, carried a transaction value of €40 million, comprised of €30 million in cash and a €10 million Seller’s Note. Net proceeds will be used to reduce indebtedness.
Robert B. McKnight, Jr., Chairman of the Board, Chief Executive and President of Quiksilver, Inc., commented, “The completion of this sale represents the culmination of our efforts to eliminate our exposure to hardgoods manufacturing. We’re delighted that we can now return to our roots, do what we do best and once again fully concentrate our efforts on our core apparel and footwear brands Quiksilver, Roxy and DC.”
In December 2007, Quiksilver sold the Roger Cleveland Golf Company to SRI Sports Limited in a transaction valued at $132.5 million. The “Rossignol Group” included Roger Cleveland Golf when Quiksilver acquired it in July 2005.
Quiksilver, Inc. was advised by JPMorgan on both sale transactions.
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