Extreme Holdings Inc., a newly formed acquisition company controlled by San Francisco-based private equity firm Altamont Capital Partners, likes the sporting goods niche.

Betting on the prospects of a trusted retail brand and its longstanding cachet, the company picked up snowboard company Mervin Manufacturing Inc. from Quiksilver Inc. (NYSE: ZQK) for $51.5 million.

This is the second sporting goods transaction the firm has been involved with in 2013. Altamont, in July, made an agreement with Billabong International Ltd. for a $294 million bridge loan that allowed the surf wear retailer to repay a previous loan.

Seattle-based Mervin designs and manufactures snowboarding products, including the Gnu and Lib Tech brands. The company will continue to manufacture snowboards for Quiksilver's Roxy brand under a licensing agreement.

Proceeds from the Mervin sale will be used to pay down Quiksilver's credit facility as well as an expansion effort in emerging markets, the company says in a statement.

The divestment is part of Quiksilver's continuing plan to exit all non-core operations. In May, Quiksilver announced plans to focus solely on its three flagship brands: Quiksilver, Roxy and DC.

The Huntington Beach, Calif.-based company intends to use proceeds from selling assets to reduce credit facilities and investment in emerging markets.

Adam Filkin, Jim Bertram, Brent Smith, Sean Huss and Michael Doyle from William Blair provided financial advice to Quiksilver for the deal.

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