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Will Quiksilver Sell Rossignol?
I’ve been hearing a lot of rumors and speculations lately that Quiksilver is looking to dump Rossignol, the ski company they purchased in March of ‘05 for just over $300 million. That doesn’t really come as much surprise seeing that Rossignol posted their first loss in 15 years under Quiksilver’s management. Not to mention that Rossignol doesn’t fit into the Quiksilver culture either.
In my opinion, this purchase was never going to be a good fit. Like I just mentioned, Rossignol just isn’t a company that fits into the lifestyle culture of Quiksilver. While they actually make some of the best skis out there, the company’s roots are just too deeply tied into ski racing. If Quiksilver wants to get into the ski game they should acquire a smaller company that’s core in the freestyle sector, someone like Line Skis would be perfect.
Although a much smaller company, Line fits perfectly right in with the action sports lifestyle. The company is breed on freestyle and has been a major factor in the innovation of skiing’s comback since the mid ’90s. They’ve been at the forefront with freestyle ski technology and have consistently sponsored and supported some of the sickest athletes in the industry. And although some years their products weren’t exactly the best constructed, that’s something Quiksilver could bring to the table which would help Line to the next level.
It’s obvious Quiksilver didn’t really understand the industry they were getting into. One doesn’t need to look any further for proof than the $4.8 million loss they posted in comparison to $3.7 million in profit the year before. The ski community would’ve responded better to Quiksilver’s entrance into the sport through a core company like Line and Quiksilver’s culture should never include ski racing.
Sources close in the company are saying that three different offers are on the table for Rossignol. They are also independent rumors that they’ll just dump a few of the companies under Rossignol such as Dynastar, Look and Lange. So what do you think? Should Quiksilver dump Rossignol?
Tags: Quiksilver, Rossignol
Posted by Cameron on Thursday, August 9th, 2007 in Brands, Snow.
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August 22nd, 2007 at 9:33 pm
Didn’t K2 purchase Line last summer?
August 24th, 2007 at 12:19 am
Mike, yes, K2 did in fact buy them. I meant it more in hindsight, meaning QS should have bought them a couple years ago instead of Rossi. Even so, there are still a few core ski companies left that would be great acquisitions right now.
October 3rd, 2007 at 3:28 pm
Another stupid incorrect article. It might not have been the best move Quik has ever made, but in theory it could have really increased it’s shares. It doesn’t fucking matter if it fit the culture. It’s run totally separate from Quik. Dude your so tied up in your little fucking gay action sports wannabe hip world that you are lost. Action Sports are so fucking gay their not hip. Don’t get me wrong I skate and surf almost everyday. It’s just that nothing any brand is doing is original.
October 7th, 2007 at 3:48 pm
When Quiksilver bought Rossi it was just a very smart buy cause they were going to the peak of revenue so buying a company lower there tax to be paid to the goverment , better profit on the stock market keep the stock holders Happy & quiksilver wanted just that …. At one point it was a very good purchase now its time to let it go , obvioulsy at 300 millions or a little less .
October 24th, 2007 at 4:11 pm
The problem that Quicksilver had in the past season and continues to have, is the distribution. They tried to make WAY too many changes in the first year. They moved operations in North America from 4 facilities down to 2…changed the shipping software and had a horrible snow year. Rossi went down not because of “culture” but logistics…
February 18th, 2008 at 12:52 pm
[...] summer I asked if Quiksilver was looking to dump Rossignol, the ski company they purchased for a cool $300 mil back in March ‘05. It’s no secret [...]
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