Quiksilver to complete sale of Rossignol in November, expands review of alternatives

By Lisa Kerner

Charlotte, N.C., Oct. 31 - Quiksilver, Inc. said it expects to close the previously announced sale of the Rossignol Group in early November.

Many of the closing conditions have been met after the unnamed buyer secured committed financing, a Quiksilver news release said.

Under revised terms of the transaction, the cash payment due to Quiksilver at closing was reduced to €30 million from €75 million. The seller's note was also reduced to €10 million from €25 million.

Quiksilver will continue to distribute Rossignol apparel through the winter season, giving the company an additional €5 million to €10 million.

"In this time of unprecedented challenge in the global credit markets, price concessions were required to achieve a final sale of Rossignol," Quiksilver chairman, chief executive officer and president Robert B. McKnight Jr. said in the release.

"We remain convinced that the timely close of this transaction is in the best interest of Quiksilver's stakeholders and we look forward to completing the sale in early November."

The company also announced it retained Morgan Stanley to assist Quiksilver in an expanded review that includes private equity investment capital and other strategic alternatives in response to turmoil in the global capital markets.

Quiksilver is an outdoor sports lifestyle company based in Huntington Beach, Calif.

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