Quiksilver To Sell Mervin Manufacturing To Extreme Holdings

(RTTNews) - Quiksilver, Inc. (ZQK) said Wednesday that it has reached a definitive agreement to divest its snowboard subsidiary, Mervin Manufacturing, Inc., to Extreme Holdings, Inc., an entity advised by Altamont Capital Partners.

The all cash deal is expected to close within several weeks.

Mervin is a designer and manufacturer of snowboarding products. Its brands include Gnu and Lib Tech. As part of the deal, Mervin will continue to manufacture snowboards for Quiksilver's Roxy brand, under a separate license agreement. Mervin generated sales of about $32 million for the trailing twelve month period.

Quiksilver said it plans to use the net proceeds of the deal to reduce amounts drawn on its credit facilities and make investments in its emerging markets.