Jump to content

Cleveland Golf now a Japanese company


gocchin

Recommended Posts

Cleveland Golf was sold by Quicksilver to Sri Sports Japan for 132 million today. This will be interesting if they revamp cleveland...

HUNTINGTON BEACH, Calif., Oct 30, 2007 (BUSINESS WIRE) -- Quiksilver, Inc. (ZQK) today announced that it has reached a definitive agreement to sell 100% of the stock of its Cleveland Golf Company, Inc. subsidiary to SRI Sports Limited, based in Japan.

The transaction value is $132.5 million and the transaction is expected to close during the fiscal quarter ending January 31, 2008. Net proceeds from the sale will be used to repay existing indebtedness.

Quiksilver originally acquired a portion of the interest in Cleveland in its July 2005 acquisition of the Rossignol Group. The remaining interest was acquired in a separate transaction in September 2007.

This transaction resulted from Quiksilver's initiative, first announced in June 2007, to explore strategic alternatives to reduce its exposure to the hardgoods manufacturing businesses. Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, "We are very pleased to have reached a compelling transaction with SRI Sports. While we believe that Cleveland is the best up-and-coming brand in the golf market with significant growth opportunities, it is not a strategic asset for us as we strive to maximize our core businesses and brands."

Bernard Mariette, President of Quiksilver, Inc., commented, "We believe this transaction is a key strategic action for our company that will drive immediate value and enable us to reduce both our exposure to the hardgoods space and our degree of leverage. We are pleased to turn over the leadership of Cleveland to such a capable and well-respected company and believe that this transaction is a clear win for everyone involved."

Ryochi Sawada, Chairman of the Board of SRI Sports Limited, commented, "We are very excited to add the Cleveland brand and business to our operations. Cleveland has a clear position of dominance in the important wedge market and a fast-growing presence in drivers and irons. We believe that this business will prove highly complementary to our own. We are looking forward to demonstrating Cleveland's full potential to the market and believe that the business can benefit greatly from our stewardship."

Greg Hopkins, President of Cleveland Golf Company, Inc, commented, "We are excited by the many positive aspects of this deal, including the combination of a great brand in golf with a new organization that is completely and solely devoted to the sport. Significantly, their operating model is set up to anticipate and respond to the seasonality and other specific requirements of the golf market. We believe that this singular focus will benefit the entire Cleveland organization in a number of ways. Each of the three companies involved - Cleveland Golf, Quiksilver, and our new parent SRI Sports benefit in significant ways as this transaction will positively effect the futures of all three companies."

Commenting on Quiksilver's remaining hardgoods brands, Mr. Mariette continued, "We remain fully committed to our vision to transform Rossignol to a global lifestyle brand and therefore to the continued ownership of the related hardgoods assets." Mr. McKnight added, "We are continuing to evaluate ways to reduce our exposure to risk in some of our non-core winter equipment businesses, including Dynastar, Lange, Look, Kerma and Risport which, like Cleveland Golf, were acquired in 2005 as part of the Rossignol Group."

Quiksilver, Inc. was advised by JPMorgan.

Link to comment
Share on other sites

I guess that means PGAPro is now a pro for a Japanese Company and I can put that HiBore XL I have downstairs in my bag. (^_^)

So how is the XL treating you? Did you get the J-Spec one?

Link to comment
Share on other sites

the deal won't be finalized until next spring... but it'll be interesting to see how they influence each other product wise and how they integrate their touring pros...

HiBore XL I've only been able to hit it at the range... got a US Spec one with the fujikura gold... it's straight and long but the feel doesn't do it for me... the Burner I have has better feel but none match the Epon's "feel"

Link to comment
Share on other sites

Is it what a good driver is all about? long and straight. If you really want to feel good and soft , get a Maruman Majesty or S Yard.

Link to comment
Share on other sites

I guess that means PGAPro is now a pro for a Japanese Company and I can put that HiBore XL I have downstairs in my bag. (^_^)

:tsg_smilie_smile2: a few years ago before I was aware of everything that the Japanese offer to the golf industry I might not have liked this move, now I love it, I'm not exactly sure how this will affect my staff agreement yet, but I'm assuming since I have a great relationship with our local Srixon rep that I will be in good hands either way

Gocchin, your 100% correct about the feel of the Hibore XL not being as nice as a Burner, the XL has a very firm feel, not exactly pure, the club does well for me because it is very low spinning and has a 2 degree open face with a flat lie(the one in my bag) and it takes the left side out of play, on top of the fact that mine is shafted with a Roddio 7WA which is better than any combo available in the states in my opinion, I just hit bombs with this combo and I couldn't be happier with the performance of the Roddio/Hibore combination, it is ideal spin and anti-left, I literally never miss fairways with my driver because I have such an ideal combo now and I owe alot of thanks to Chris and TSG who took alot of time and effort to get me in the perfect combo that meets my needs, I'm a hard person to please when it comes to equipment, I think Chris found that out over the last year or so, but he has achieved what many in the past have failed to do and for that reason alone I will always spread the word about TSG and their premium service :tsg_smiley_putter2:

Link to comment
Share on other sites

I like a driver that is long, straight, feels good and sounds good. (^_^)
I know what you mean, I am actually about to be in the market for a JDM driver, I'm trying to find a "flatter lie" with a 1 degree open face, I'm considering maybe the new PRGR Silver Tour or possibly the Yamaha 425 I have been reading about, I don't know enough about them yet to make a purchase so I'm trying to read as much as possible, I have no idea what I will end up getting but I'm hoping to discover something that will perform similar to my current setup but feel and sound different, besides I can get as many Clevelands as I want at any time and we always want what we don't have right?......ha ha, it is fun just to look in the pro shop area though :tsg_smiley_putter2: Edited by PGAPro
Link to comment
Share on other sites

I know what you mean, I am actually about to be in the market for a JDM driver, I'm trying to find a "flatter lie" with a 1 degree open face, I'm considering maybe the new PRGR Silver Tour or possibly the Yamaha 425 I have been reading about, I don't know enough about them yet to make a purchase so I'm trying to read as much as possible, I have no idea what I will end up getting but I'm hoping to discover something that will perform similar to my current setup but feel and sound different, besides I can get as many Clevelands as I want at any time and we always want what we don't have right?......ha ha, it is fun just to look in the pro shop area though :tsg_smiley_putter2:

J, now you can send me some of your Cleveland stuff... but I'll need a softer flex. :tsg_smilie_smile2:

Link to comment
Share on other sites

I guess we have the same taste. :atsg_smilie_roll: I also wouldn't mind if it looks good at address. lol

Bat

That helps too Bat, but if you're really good, you can always close your eyes :atsg_smilie_roll:

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...