News courtesy of http://www.skipressworld.com
Huntington Beach, Calif. (Ski Press)-Quiksilver, Inc. announced an agreement
in principle to acquire the Rossignol Group SA. 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. 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
companyÃ¢â¬â¢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, Ã¢â¬ÅJoining 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. RossignolÃ¢â¬â¢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.Ã¢â¬?
Laurent Boix-Vives, Chairman of the Board of Skis Rossignol SA, said, Ã¢â¬ÅI 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 groupÃ¢â¬â¢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 RossignolÃ¢â¬â¢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, QuiksilverÃ¢â¬â¢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.Ã¢â¬?
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 (EUR 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 QuiksilverÃ¢â¬â¢s