Quiksilver, Inc. and SurfStitch Group issued a statement confirming they have reached a definitive agreement for the sale of Quiksilver’s majority ownership interest in Surfdome. The US based  outdoor sports lifestyle business expects to receive net proceeds of approximately 16 million US dolars for its equity interest, loans and other amounts due from Surfdome. The all-cash transaction, which is subject to SurfStitch’s agreement to the purchase of the minority interest in Surfdome, is expected to close before the end of the current calendar year.

As part of the transaction, Surfdome will continue to carry Quiksilver, Roxy and DC products under a two-year supply agreement.

“Our business with Surfstitch has been growing, and we view both Surfdome and Surfstitch as key retail partners”, commented Andy Mooney, Chairman and Chief Executive Officer of Quiksilver, Inc., adding: “The sale of Surfdome is in keeping with our strategy to focus on our core Quiksilver, Roxy and DC brands. Moreover, this will complete our planned exits from non-strategic businesses, which have included Mervin Manufacturing, Hawk Designs, VSTR, Summer Teeth and Moskova.”

Justin Cameron, SurfStitch Group Chief Executive Officer also commented on the deal:  “We are excited to welcome the Surfdome team into the SurfStitch Group. Having watched the successful growth of Surfdome’s business in the UK and broader European market with interest since our launch in Europe, we always hoped to find an opportunity to combine our businesses and leverage the strong operational synergies that exist.”

According to a press release issued by Quicksilver, Inc., Surfdome generated sales of approximately 60 million US dollars for the twelve months period ended in October 2014.