Quiksilver to sell Surfdome to SurfStitch group

Sports apparel and footwear retailer Quiksilver said Tuesday it will sell its majority stake in Surfdome, an online retailer of action sports products, to Australian-based SurfStitch Group.

The company expects to generate net proceeds of nearly 16 million dollars for its equity interest, loans and other amounts due from this sale. As part of the deal, Surfdome will continue to carry Quiksilver, Roxy and DC products under a two-year supply agreement.

Andy Mooney, CEO of Quiksilver, said the sale will help the company to focus on its core Quiksilver, Roxy and DC brands. He also said that the sale will complete its planned exits from non-strategic businesses, which have included Mervin Manufacturing, Hawk Designs, VSTR, Summer Teeth and Moskova.

The all-cash transaction is expected to close before the end of the current calendar year. (dpa-afx)