Quiksilver, Rossignol in Talks
Quiksilver Inc. said Monday that it has been in talks with Skis Rossignol about an acquisition that would make the Huntington Beach company a major player in winter sports equipment, fully extending its range from surf to powder.
The possibility of a union between the biggest name in surf wear and the world’s best-known ski company sparked interest among analysts, ski industry experts and investors.
In Paris, Rossignol’s stock climbed to a four-year high on reports about Quiksilver’s interest in the 100-year-old company, which is controlled by the Boix-Vives family. Quiksilver’s stock closed at $29.95, up 16 cents, on the New York Stock Exchange.
Rossignol, based in Voiron, France, confirmed that it had been approached by Quiksilver after the French financial daily Les Echos reported that Chairman Laurent Boix-Vives was considering offers from Quiksilver and other companies, which the paper didn’t identify.
In a statement issued Monday, Quiksilver President Bernard Mariette, who is French, said he had a “long-standing personal relationship” with Boix-Vives.
“Over the years we have shared views on our businesses and have discussed mutual opportunities in the outdoor market, and even though we have no formal agreement, I’m sure our relationship will continue,” Mariette said. “We are also studying other opportunities as well.”
If Quiksilver were to acquire the Boix-Vives family’s stake, the California company -- largely known for its surfing, skating and snowboarding apparel lines -- would become “one of the leaders in the entire sports business,” said Jim Spring, president of Leisure Trends Group, a Boulder, Colo.-based sports industry research firm.
Lee Bacus, an analyst with Buckingham Research Group, said: “I would expect, if they do get Rossignol, which is far from a done deal, they could develop an apparel line around it.”
Quiksilver has been expanding its reach internationally and its sales swelled past $1 billion for the first time last year. In the fiscal fourth quarter that ended Oct. 31, profit jumped 43% to $24.9 million.
The $2.3-billion ski and snowboard industry has been consolidating in recent years, with, for instance, Carlsbad, Calif.-based K2 Inc. buying ski-equipment manufacturers Volkl Sports Holding and Marker Group.
At the same time, the industry has struggled, partly because of lift-ticket price inflation and, Spring said, partly because of weakness in the Japanese market.
But now, he added, it appears “poised for growth.” That’s partly because of new technology that has produced such innovations as twin tip skis, which make the sport easier to master, and because of the surge of young people attracted to snowboarding.
Rossignol is best known for its skis but also has a line of snowboards. Quiksilver, parent to 17 brands, sells snowboards, snowboard boots and bindings under the Lib Technologies, Gnu, DC Shoes, Roxy and Bent Metal labels.
There are several ways the two companies could complement each other, analysts said, noting that Rossignol sells golf clubs and Quiksilver has a golf apparel line.
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Associated Press was used in compiling this report.
