Sound Off: Will the buyout / consolidation trend continue?

Hey! Here's an amusing scanned Mervin Mfg. Press Release

Costa Mesa, California-August 7, 1997 - Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc. (NASDAQ -QUIK) today announced that Quiksilver acquired the operations of Mervin Manufacturing, Inc. The transaction was completed on August 6, 1997.

The Mervin Manufacturing facility in Port Angeles, Washington

Mervin is the maker of two premier snowboard labels, Lib Tech and Gnu, and Bent Metal bindings, a conventional binding system that is complementary to the Arcane step-in system of Quiksilver WinterSports. Mervin has offices and manufacturing facilities in Seattle and Port Angeles, Washington. Mervin's current business is approximately $10,000,000 annually and is profitable.

Mr. McKnight indicated that based on the strengths of the Mervin labels, the expected continued 30% growth in the sport and snowboarding in general, and Quiksilver's commitment to extreme sports and the Generation Y market, Quiksilver and Mervin believe that there are many opportunities and synergies that can be exploited together. The acquisition of Mervin is consistent with Quiksilver's long range corporate growth strategy which includes the ownership of premier labels under one corporate entity. Mervin will continue to operate autonomously in it's current locations with its present management and staff.

Mervin's guiding lunatic Mike Olson peddling one of his creations.

The acquisition price was $4,350,000 plus assumption of bank debt of approximately $3,000,000. Quiksilver paid $1,750,000 upon closing. The balance of $2,600,000 will be paid in the form of "earnout" as Mervin's operation plans are met for the remainder of fiscal 1997 and through fiscal 2000. The acquisition was funded from Quiksilver's current line of credit.

Sound Off: Will the buyout / consolidation trend continue?