Huntington Beach, CA – Quiksilver, Inc. on Wednesday announced that the company has reached a definitive agreement to divest its snowboard subsidiary, Mervin Manufacturing, Inc., to Extreme Holdings, Inc., an entity advised by Altamont Capital Partners, based in the San Francisco Bay Area. The all cash transaction is expected to close within several weeks and subject to certain customary closing conditions.

Mervin, founded by snowboarders Mike Olson and Pete Saari in 1977 and based in Carlsborg, Wash., is a leading designer and manufacturer of snowboarding products. Its brands include Gnu and Lib Tech. As part of the transaction, Mervin will continue to manufacture snowboards for Quiksilver’s Roxy brand under a separate license agreement.

In May 2013, Quiksilver announced a multi-year profit improvement plan designed to accelerate the company’s three fundamental strategies of strengthening brands, growing sales and driving operational efficiencies. The plan’s initiatives include divesting non-core businesses in order to focus on prioritizing the company’s three flagship brands. Quiksilver had earlier divested itself of the Rossignol ski brand in 2008 in an effort to reduce debt.

Quiksilver said it intends to use the net proceeds of the Mervin transaction to reduce amounts drawn on its credit facilities and make investments in its emerging markets. Mervin generated sales of approximately $32 million for the trailing 12-month period.

Steve Brownlie, Principal at Altamont, said, “Mervin Manufacturing represents an opportunity to invest in a special company with two of the industry’s finest action sports brands in Lib Tech and GNU along with a passionate team, including first-rate leadership in Ryan, Mike and Pete. We look forward to building on Mervin’s strong brand position of authenticity, premium products and service and its history of driving innovation that advances the sports of snowboarding, skiing, skateboarding and surfing.”

Altamont Capital’s portfolio covers a broad range of industries including insurance lost adjusting, used car sales, pharmacy operations and food service. Mervin will join the company’s previous acquisition in July of this year, Dakine, in Altamont’s investments with ties to the snow sports industry.