Acquisition of Rossignol by Quiksilver

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Acquisition of Rossignol by Quiksilver

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Abstract

This document studies the acquisition of Rossignol by Quiksilver for several reasons. First, these two companies are working on a sector that affect us directly in order to know the area of recreation and outdoor sports sector, also called as 'outdoor'. Thus this study directly target this market. So it is found to be of particular interest in studying this sector through the study of these two companies and brands they carry.

With a decline of 3 years on the date of purchase of Rossignol by Quiksilver, it is now accepted that the operation was a failure. It was therefore chosen to study the bid, knowing that it was not a success. It seemed just as rewarding to explore an acquisition that did not work, when compared to others that went well. This allows one to ask about the reasons for the failure to understand the process before reaching such a conclusion and thus determine what may be the limits of a merger or acquisition.

After this brief but necessary explanation about the reasons for the choice of subject, now see the scenery amid which the transaction took place. Quiksilver is a US company operating in the midst of outdoor sports. These include sports (mainly water) and urban sports (skateboarding). The brand is thus the benchmark for sport ware. Rossignol, a French company, operates in the field of winter sports: skis, snowboards. Both companies operate in highly competitive markets. Except these few lines of textile companies have never been directly competed against one another.

So with a desire to extend its strategic performance convinced Quiksilver to overtake Rossignol. Quiksilver indeed was not yet on the market of snow. Rossignol's poor market at the time was therefore an opportunity for the US giant to extend its scope to winter sports. On paper, this group seemed like a good deal for one as when compared to that of an another, however many obstacles have stood in front of Quiksilver to carry out the management of its new European business.

An attempt has been made to answer the following question throughout this case: Why the French Company is not successful to advance before the king of American surfing? Initially the study will focus on the takeover itself, stages and the motives of this operation. Then it will examine the reasons that made this operation a failure: how to get there? In the third part it will discuss the different options available to Quiksilver in for best management of the future of the operation.

In 1907, Mr. Abel Rossignol father created in Voiron (Isère) a factorycans and wood products for the textile industry and produced his firstpair of skis in solid wood. In 1911, he founded a branch at its plant for manufacturing of skis, which is distinguished by its competition in several technical and sports scores.
In recent years, the Rossignol Group has strengthened its global supply strategy, all products in the articles of winter sports, provided a strong impetus to new snow and its business and the golfsnowboarding and more recently the development of the textile.

Quiksilver was founded in Torquay in the Australian state of Victoria in 1969 by two surfers Alan Green and John Law. These two founders of the Empire Quicksilver were the first to create a specific garment for surfing: the board short. Soon, the two friends embark on the large-scale manufacturing of their clothing. The prints of Hokusai, a wave with a mountain in the background, is said to be the inspiration for the logo.

Tags: Quicksilver, Rossignol, acquistion of Rossignol by Quicksilver

Analysis and presentation of the specific profile of the company and establishment of key strategic objectives of the company for international expansion
1. The Profile
2. Main goals for international expansion
Choice of selection criteria for countries that are most appropriate for the profile of our business and our strategic objectives.
1. The cultural criterion
2. The economic criterion
3. The geographical criterion
4. The legal context
Application of the criteria chosen to compare the terms offered by the three countries, and choosing the best country for your project.
1. The economy
2. The geography
3. The legal context
4. The cultural criterion
Choosing the best country
Description of the profile chosen market against our strategic objectives
1. The economy
2. Legal Factor
3. The Culture
4. The geography
Establishing the best market entry strategy
Future Development Strategy
1. Focused on customers
2. Looking to the staff
3. Oriented techniques and energy

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Extract

[...] The redemption proposal was attractive for the boss of Rossignol, Laurent Boix-Vives, who accepted the buyout proposal of Bernard Mariette, President of Quiksilver. The friendly transaction valued Rossignol at 236 million Euros, and would be held in the form of a takeover bid. The bid is to redeem all the shares of the target company to the existing shareholders. To do so, the offeror of the OPA proposes a redemption price of securities which is generally higher than the last traded price. The President hoped that this sale of Rossignol would stimulate activity while protecting these workers. [...]

[...] Initially, Rossignol was the world leader of winter holidays (ski, snowboard, associated, clothes Rossignol was the last French company in this sector. On the other hand, Quiksilver is a big American company, the best one on the outdoor textile market. For one decade, because the winter holidays market was in decline, Rossignol's results were very bad. Thus Rossignol decided to let Quiksilver merge. Bernard Mariette, the French CEO of Quiksilver Europe was convinced that buying the French company was a good idea for the American group. Indeed, Quiksilver was absent on the snow sports sector. [...]

[...] Rossignol is a French company, which operates in the field of winter sports, procducing Skis, snowboardsetc. Both companies operate in highly competitive markets. Except for a few lines of textiles these companies have never been directly in competition against one another. This is a strategic expansion of Quiksilver in which Rossignol was convinced to be bought. Quiksilver indeed was not yet on the market of snow. Rossignols poor health at the time was therefore an opportunity for the U.S. giant to extend its scope to winter sports. [...]

[...] To overcome the expectation of a possible purchase Quicksilver has already begun to reshape troops of Rossignol. However what goes into the new policy of Quicksilver? The new policy of Quicksilver Towards specialization Firstly, with the intention of sale of the equipment of Rossignol, Quiksilver hopes to keep the clothing range of Rossignol. This is due to the fact that the clothing industry is what Quiksilver has always managed to perform in. In fact, the clothes are the products that the brand has launched first. [...]

[...] Today 53% of French rent their equipment for winter sports. However, as professionals, rental equipment (skis or snowboard) kills between 3 and 4 sales to individuals. Especially with the decline in purchasing power, the French are increasingly reluctant to equip themselves with new equipment. After hiring professionals, people in countries bordering the Alps (Austria, Italy and Switzerland), are reluctant to pay for rent. These setbacks affecting professional winter sports have resulted in a number of unsold products: 1 million pairs remained on the distributor's arm, according to Philippe Van Der Made, Purchasing Manager at Intersport . [...]

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