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Quiksilver Buying Australian Namesake for $46.2 Million

August 10, 2000|Dow Jones

Quiksilver Inc. will pay at least $46.2 million to acquire the Australian company that owns the worldwide trademark to the Quiksilver brand name, according to a regulatory report filed Wednesday.

The Huntington Beach surfwear maker paid $23.1 million for Quiksilver International Pty Ltd. and is obligated to pay the remainder in two future payments, the company disclosed in a report filed with the Securities and Exchange Commission.

The additional payments are to be determined by Quiksilver's future financial performance, but a minimum of $11.9 million is due June 30, 2002, and a minimum of $11.2 million is due June 30, 2005.

Quiksilver also reported it increased its credit facility with Union Bank by $10 million to fund the acquisition.

Quiksilver closed the deal July 27, but gave no financial details.

The Australian firm founded the original business three decades ago. The Huntington Beach company acquired the rights to the Quiksilver brand for the United States, Mexico and Puerto Rico in 1986, using part of the proceeds from its initial public offering at the time.

Quiksilver's stock rose 63 cents to $15.94 a share Wednesday on the New York Stock Exchange.

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