Quiksilver to sell business to SRI

Quiksilver Inc., the Huntington Beach maker of surfing and snowboarding gear, agreed to sell its Cleveland Golf Co. subsidiary to Japan-based SRI Sports for $132.5 million to reduce its hard goods manufacturing.

The deal is expected to close during the fiscal quarter that ends Jan. 31, Quiksilver said. The company will use the proceeds from the sale to pay off debt.

Quiksilver first acquired part of Cleveland Golf when it purchased Rossignol Group in June 2005 and said it was looking to reduce its involvement in other winter sporting equipment businesses included in that purchase such as Dynastar, Lange, Look, Kerma and Risport, according to the statement. Quiksilver didn’t immediately return a call seeking comment.

Quiksilver shares fell 28 cents to $12.85.