In their on-going efforts to streamline assets and reduce amounts drawn on its credit facilities, Quiksilver announced October 23, 2013 that it would be selling Mervin Manufacturing, owners of the popular snowboarding brands GNU and Lib Tech, to Extreme Holdings, Inc. an entity advised by Altamont Capital Partners, who also advised on the deal when Billabong sold DaKine.
The all cash transaction is expected to close within several weeks and subject to certain customary closing conditions.
As part of the transaction, Mervin will continue to manufacture snowboards for Quiksilver’s Roxy brand, under a separate license agreement.
In May 2013, Quiksilver announced a multi-year profit improvement plan designed to accelerate the company’s three fundamental strategies of strengthening brands, growing sales and driving operational efficiencies. The plan’s initiatives include divesting non-core businesses in order to focus on prioritizing the company’s three flagship brands.
Quiksilver said it intends to use the net proceeds of the transaction to reduce amounts drawn on its credit facilities and make investments in its emerging markets. Mervin generated sales of approximately $32 million for the trailing twelve month period.
Steve Brownlie, Principal at Altamont, said, “Mervin Manufacturing represents an opportunity to invest in a special company with two of the industry’s finest action sports brands in Lib Tech and GNU along with a passionate team, including first-rate leadership in Ryan, Mike and Pete. We look forward to building on Mervin’s strong brand position of authenticity, premium products and service and its history of driving innovation that advances the sports of snowboarding, skiing, skateboarding and surfing.”
Read more on the massive changes in the big 3 brands of surfing here.
