QuickSilver is Shopping Cleveland Golfposted by MR WAVETHEORY at 9/19/2007 07:23:00 AM
I used a Cleveland Launcher a while ago when I played some golf. The black and yellow color scheme looks really nice on their clubs. The Cleveland clubs were really nice to play but I think the company has changed strategy recently. I visited a few golf stores recently and Cleveland has definitely gone downstream - as in reduced the price of its clubs to reach more buyers. The clubs were piling up. Maybe that explains the sale.
The price tag: a cool $60 million. Industry sources say Quiksilver Inc., which acquired Cleveland in 2005 as part of a deal to buy ski-maker Rossignol, is in the final stages of unloading the golf equipment maker for roughly $60 million to $70 million. Some analysts say the price is a bargain, noting Cleveland likely is worth at least $100 million, but they add an expedient sale even at a discount is in Quiksilver’s best interests.