Quiksilver To Pursue Divestiture Of Non-core Businesses, Including Surfdome

(RTTNews) - Quiksilver, Inc. (ZQK) announced its intention to pursue the divestiture and exit of non-core businesses, including Surfdome Shop, Ltd., Hawk Designs, Inc. its Moskova brand, and its business under license with Maui and Sons. As a result, the company plans to classify Mervin, Surfdome and Hawk as assets held for sale and discontinued operations at October 31, 2013.

The company also announced completion of several initiatives under its Profit Improvement Plan. The initiatives include: sale of its snowboard subsidiary, Mervin Manufacturing for $58 million; purchase of all remaining minority interests in its joint ventures in Mexico and Brazil; establishment of a 60 million euros European credit facility.

Andy Mooney, President and CEO of Quiksilver, said: "We used a portion of the Mervin proceeds to invest in our high-growth subsidiaries in Mexico and Brazil, and we now own 100 percent of our operations in both countries. The remaining proceeds from the Mervin sale, combined with the new European credit facility, enhance our financial flexibility and add greater stability to our liquidity."