|
PRESS RELEASE FOR IMMEDIATE RELEASE (714) 889-2200
Quiksilver Announces Planned Acquisition of the
Rossignol Group
Accretive Combination Creates the Number One Outdoor
Sports Lifestyle Company
Huntington Beach, California, March 22,
2005--Quiksilver, Inc. (NYSE: ZQK) announced an
agreement in principle to acquire the Rossignol Group SA
(SKIR.PA on Eurolist by Euronext), the
world leader in winter sports. The Rossignol Group owns
and operates a diversified portfolio of
premier brands including Rossignol, Dynastar, Lange and
Look in winter sports, as well as Cleveland
Golf. The combination of Quiksilver and Rossignol will
create the global leader in the outdoor sports
lifestyle market. Quiksilver believes the acquisition
will be accretive by between $0.04 and $0.06 to
earnings per share in the current fiscal year.
Headquartered in Voiron, France, the Rossignol Group
achieved total sales of approximately
$625 million for the twelve months ended September 30,
2004. The company's broad product line
includes skis, ski boots and bindings, snowboards,
snowboard boots and bindings, and related apparel
and accessories, as well as golf clubs and golf apparel
and accessories. Quiksilver, Inc. reported
revenues of $1.3 billion for its fiscal year ended
October 31, 2004. Robert B. McKnight Jr., Chairman of
the Board and Chief Executive Officer of Quiksilver,
Inc., commented, 'Joining forces with Rossignol allows
us to create the number one outdoor sports
lifestyle company in the world. Just as Quiksilver is
the leader in boardsports, Rossignol leads the
winter sports market, and Cleveland is a powerful force
in golf. Rossignol's strong stable of brands
is a perfect complement to our portfolio. Furthermore,
we both share the same values, culture and
philosophies, making this combination that much more
compelling. Many opportunities lie ahead,
and we look forward to capitalizing on the tremendous
synergies that come from this partnership.' Bernard
Mariette, President of Quiksilver, Inc., stated, 'The
alliance of our two companies is
a natural development. We share the same passion for
outdoor sports, and we have the same
commitment to developing outstanding products for our
customers around the world. Rossignol has a
tremendous history in the mountains and continues as the
number one company in alpine ski
products. Its current position is based on the vision of
one man, Laurent Boix-Vives. Rossignol has
tremendous brands based on many seasons of product
excellence and performance, and this planned
strategic union will unlock tremendous opportunities for
growth.' Laurent Boix-Vives, Chairman of the Board of
Skis Rossignol SA, said, 'I am happy to take
this next step with Quiksilver. I have been intimately
involved with the Rossignol Group for fifty
years, and this combination offers a bright future and
prospects for growth and development wholly
consistent with the group's past achievements and
strategy, to which clients and employees alike are
sensitive. I see in Quiksilver a corporate culture and
commitment to sports and entertainment that
are Rossignol's priorities since the very beginning.
Quiksilver has chosen France for its European
headquarters, and I have known and had an excellent
relationship with Bernard Mariette, Quiksilver's
President, for a very long time. My endeavors with the
Quiksilver-Rossignol group are such that
there cannot be a better transaction that would
guarantee the longevity of the group that I have built.
Finally, the offer is excellent for all Rossignol
shareholders from a financial point of view.'
Mr. McKnight concluded, 'Over the years we have
successfully evolved from a surf brand to
the premier boardsports company. This alliance marks the
next stage in our evolution as we together
become the world's leading outdoor sports lifestyle
company. Our team is energized and motivated,
our future is bright and we move forward with a powerful
portfolio of brands and significant
prospects for growth.' Quiksilver will purchase a
majority holding of the Rossignol Group controlled by
Mr. Boix-
Vives and launch a public tender offer for the minority
shares at $25.50 per share ('19.00 per share),
which equates to a purchase price of approximately $320
million for 100% of the shares. The
purchase of the majority holding will be paid for with
approximately 30% in shares of Quiksilver,
Inc. and 70% in cash, a portion of which will be
deferred, while the minority holding will be
purchased for 100% cash. Mr. Boix-Vives will have a key
advisory role with both Quiksilver, Inc.
and Cleveland Golf. Additionally, the Boix-Vives family
will retain a portion of its direct ownership,
an approximate 35% interest, in Cleveland Golf for at
least 4.5 years. The acquisition is subject to
customary regulatory approvals in France and elsewhere,
and has been submitted to the workers
council for review. The transaction is expected to close
during Quiksilver's third quarter.
CALYON, Paris, a division of Credit Agricole, is acting
as exclusive financial advisor to
Quiksilver, Inc., and JPMorgan has committed to finance
the transaction. Quiksilver announced that the
Company's conference call to review the acquisition will
be
broadcast live over the Internet on Tuesday, March 22,
2005 at 8:30 a.m. Eastern Time. The
broadcast will be hosted at www.quiksilver.com/investor
and at www.viavid.net. To listen to the
broadcast, your computer must have Windows Media Player
installed. If you do not have Windows
Media Player, go to the latter site prior to the call,
where you can download the software for free. About
Quiksilver: Quiksilver designs, produces and distributes
clothing, accessories and related products for
young-minded people and develops brands that represent a
casual lifestyle'driven from a boardriding
heritage. Quiksilver's authenticity is evident in its
innovative products, events and retail
environments across the globe. Quiksilver's primary
focus is apparel, footwear and related accessories for
young men and
young women under the Quiksilver, Roxy, DC Shoes,
Raisins, Radio Fiji and Island Soul labels.
Quiksilver also manufactures apparel, footwear and
related accessories for boys (Quiksilver Boys and
Hawk Clothing), girls (Roxy Girl, Teenie Wahine and
Raisins Girls), men (Quiksilveredition and
Fidra) and women (Leilani swimwear), as well as
snowboards, snowboard boots and bindings under
the Lib Technologies, Gnu, DC Shoes, Roxy and Bent Metal
labels. Quiksilver's products are sold
throughout the world, primarily in surf shops, skate
shops and other specialty stores that provide an
authentic retail experience for our customers. About
the Rossignol Group:
The Rossignol Group is the world's leading manufacturer
of wintersports equipment. It
offers a full range of products for all disciplines
(alpine, nordic, snowboard) and all product families
(skis, bindings, boots, poles, and boards) under the
brand names Rossignol, Dynastar, Lange, Look,
Kerma, Hammer and Risport. Additionally, the Rossignol
Group designs, manufactures, and markets
golf products under the Cleveland Golf brand name. The
Rossignol Group's product range also
includes apparel and accessories. For more information,
please visit the Company's website at
www.rossignol.com.
Investor Relations: Chad Jacobs/James Palczynski
Integrated Corporate Relations
(203) 682-8200
Company Contact: Robert B. McKnight, Jr.
Chairman & CEO
Bernard Mariette
President
Steven L. Brink
Chief Financial Officer
Quiksilver, Inc.
This Press Release contains forward-looking statements.
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.
|
