by The Editors on November 19, 2008
Those with a stomach for SEC filings should bump on over to EDGAR and check out Quiksilver’s 8K filing relating to their sale of Rossignol to Chartreuse et Mont Blanc LLC. The most interesting piece of info we stumbled onto was that selling Rossignol is going to cost Quiksilver $14.7 million.
Transaction costs: $ 9.9 million. Employee-related costs: $ 1.8 million. Other costs: $ 3.0 million. Total costs before taxes: $14.7 million.
That kind of eats into the $40 million Chartreuse et Mont Blanc paid. We didn’t know selling something could be so expense. Quik stock closed down today at $1.04.
[Link: Edgar Online]
by The Editors on November 13, 2008
Looks like Bob McKnight and the boys at Quiksilver have finally dumped Rossignol off on Chartreuse & Mont Blanc for EU30 million in cash and a EU10 million note, according to Forbes. As we mentioned before, it’s way less than originally planned, but at least they’re out.
“The completion of this sale represents the culmination of our efforts to eliminate our exposure to hardgoods manufacturing,” Chief Executive Robert McKnight Jr., said in a statement. “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.”
And it looks like that is going to take an awesome amount of concentration.
[Link: Forbes]
by The Editors on October 31, 2008
In its original sales announcement in August 2008, Quiksilver was reportedly unloading Rossignol to Chartreuse & Mont Blanc for EU75 million in cash and EUR25 million sellers note (or a total of EUR100 million). But that was in the days before the crash. Now the deal, which is supposed to close “in early November,” looks quite different.
. . . the parties agreed to recast the terms of the sale due to the recent challenges in the global credit markets. The revised transaction reduces the cash payment to Quiksilver upon closing from 75 million to 30 million and reduces the seller’s note from 25 million to 10 million.
So, the price former Rossignol CEO Bruno Cercley is now paying for the company is only EUR40 million. That’s a 60 percent discount after only two months. How’s that for a company for which Quiksilver originally paid $320 million?
[Link: MarketWatch]
by The Editors on August 27, 2008
It appears that Quiksilver has found someone on whom to unload their flagging ski company Rossignol. The company is Chartreuse & Mont Blanc and it’s lead by Bruno Cercley a former CEO of Rossignol.
The proposed transaction is valued at EUR100 million, which comprise of EUR75 million in cash and a EUR25 million Seller’s Note. Quicksilver intends to use the net proceeds from the sale to repay existing indebtedness.
Chartreuse & Mont Blanc is mostly owned by Macquarie Group which also owns a minority interest in the Jarden Group (owners of K2 and Adio), according to a story on MarketWatch.
What a stunning business transaction this has been. Here are the numbers: They bought Rossignol in March of 2005 for $320 million. Then sold off the Cleveland Golf portion of the company in November of 2007, for $132.5 million. So, it looks like Quiksilver only lost about $30 million on the deal in a little under three years. Nice work.
[Link: RTT News and MarketWatch]
Those with a stomach for SEC filings should bump on over to EDGAR and check out Quiksilver’s 8K filing relating to their sale of Rossignol to Chartreuse et Mont Blanc LLC. The most interesting piece of info we stumbled onto was that selling Rossignol is going to cost Quiksilver $14.7 million.
