Prudential Equity Group said Friday that Huntington Beach-based surfwear maker Quiksilver Inc.’s pending acquisition of France’s Skis Rossignol SA is likely to negatively impact its growth rate and operating margin.
Prudential cut its rating on Quiksilver from “overweight” to “neutral” and its price target from $18 to $17. Shares of Quiksilver were down 2.1% to $15.9 in trading Friday.
Quiksilver is paying about $320 million to buy Rossignol, a troubled maker of skis and related products. The deal is expected to close this month.
In June, Rossignol posted a loss of 25 million euros for the 12 months ended March 31, after a 7.2 million euro profit the previous year. It cited restructuring charges and a slowdown in snowboarding sales for the loss.
Thursday, Quiksilver named Marty Samuels to run its Americas operation and Pierre Agnes to head Europe. The move puts in place a new management setup designed to oversee Quiksilver’s growing global operations.
Samuels formerly was president of Quiksilver’s men’s clothing business in the Americas. Agnes was managing director of Quiksilver Europe.
Along with Clive Fitts, president of Quiksilver’s Asia Pacific operation, the newly appointed executives form the company’s senior global management team.
All three executives are set to report to Bernard Mariette, Quiksilver’s president and architect of the company’s pending buy of Rossignol.
