Weyco Group Inc. announced Wednesday that it purchased The Combs Co., owner of the Bogs and Rafters footwear brands, for $29.4 million.
Milwaukee-based Weyco, which also owns the Florsheim, Stacy Adams and Nunn Bush brands, will assume Combs’ debt of roughly $3.5 million and contingent payments after two and five years, which are dependent on Bogs achieving certain performance measures. The transaction was funded with available cash and borrowings under Weyco’s revolving line of credit.
Bill Combs, founder and CEO of Eugene, Ore.-based Bogs, will remain as president. Sue Combs will become the manager of design and development, and Dustin and Riley Combs will each stay on as VPs of sales.
“These brands fit well into our strategy to diversify our product mix and enhance our share of the casual footwear market,” Tom Florsheim Jr., chairman and CEO of Weyco, said in a statement. “Bill Combs brings a lifetime of experience to our company, and along with him and his family, we look to develop and grow this business to its fullest potential.”
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Bogs’ sales for its most recent fiscal year were approximately $27 million, according to a press release. And Weyco said it expects the acquisition to increase earnings in 2011, excluding the impact of certain purchase accounting adjustments, as well as transaction and integration costs.
“With Weyco providing a modern distribution center, superior systems, administrative functions and capital, we can continue our rapid growth and take our customer service to an even higher level,” said Bill Combs. “Bogs is a family business. We are honored to join another family business with such a tremendous history in the shoe industry.”