Extreme Holdings Inc. is buying snowboard company Mervin Manufacturing Inc. from Quiksilver Inc. (NYSE: ZQK).

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.

Extreme Holdings is a newly formed acquisition company controlled by San Francisco-based private equity firm Altamont Capital Partners. Altamont focuses on investing in financial services, industrial, health care, technology, consumer, retail, aerospace and defense companies. The Mervin deal 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. 

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. In May, Quiksilver announced plans to divest non-core businesses in order to focus on the company’s three flagship brands: Quiksilver, Roxy and DC.

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

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