HUNTINGTON BEACH, Calif.–Sept. 23, 2002–Quiksilver (NYSE:ZQK) is pleased to announce that it has acquired Beach Street, Inc., the owner and operator of 26 Quiksilver outlet stores, in an all stock transaction.
Quiksilver will integrate the operations of Beach Street with its own QS Retail, Inc. division. In addition to the strategic and operational benefits to be realized in the acquisition, Quiksilver expects the transaction to add approximately $12 million in revenues to fiscal 2003 results.
Bob McKnight, Chairman and Chief Executive Officer of Quiksilver commented, “This acquisition further cements our control over our brands and our distribution. This business will not only contribute to our sales and profits, but it will also allow us to gain additional flexibility in our off-price business by reducing our reliance on independent off-price retailers while giving us superior operational efficiencies in inventory planning and shipping.”
The price for the 26 store, 16-state chain was $7.5 million, payable in stock valued at $25 per share.
Additionally, Quiksilver has entered into a one-year consulting agreement with John Thompson, the principal shareholder and Chief Executive Officer of Beach Street, Inc., who commented, “I’m proud to continue my long-term association with Quiksilver, which began with my first job as a sales representative in 1979. My last 16 years as a licensee helping to build Quiksilver’s factory outlet business have been extremely gratifying. We’ve taken the chain from a 4-store operation in Southern California to 26 locations in geographically diverse markets across the U.S. Now, as a Quiksilver shareholder, I consider myself extremely fortunate to still be involved with a Company and brand like Quiksilver that continues to grow and generate enthusiasm and loyalty around the world. I am particularly grateful to Bob McKnight, the CEO and founder of Quiksilver, whose vision for the brand has given me the opportunity to participate in the success of this great Company.”
Bernard Mariette, the President of Quiksilver concluded, “The additional control that comes from owning this channel of distribution in the United States is consistent with our global strategy of consolidating our brands, operations and distribution. We are excited about the increased operational agility these outlets will provide the company and are pleased to take yet another step in the pursuit of enhancing the value of our business and the opportunities we have for growth.”
Quiksilver designs, produces and distributes clothing, accessories and related products for active-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 for young men and young women under the Quiksilver, Roxy, Raisins, and Radio Fiji labels. Quiksilver also manufactures apparel 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, Supernatural Manufacturing and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops and specialty stores that provide an outstanding retail experience for their customers.