Heelys Inc. is selling itself for $13.9 million in cash to private equity firm Evergreen Group Ventures, the firm announced Tuesday.
The deal, struck Monday, will see Evergreen dissolve the footwear company, liquidate its assets and distribute the net proceeds to the firm’s stockholders in one or more installments, while still retaining the brand equity to rebuild the product line.
The agreement also contains a 30-day “go-shop period” during which Dallas-based Heelys, which has seen years of sliding sales and market share, can actively solicit and negotiate alternative proposals.
In August, the wheeled-sneaker maker reported its second-quarter loss widened on a revenue decline of 31 percent.
“After a thorough analysis of various strategic alternatives, the board has determined that this all-cash transaction represents a great outcome for the company and its stockholders,” Tom Hansen, president and CEO of Heelys, said in a statement.
Evergreen’s core business is in enhancing brand equity through licensing, promotion and media partnerships in the sporting goods, toy, game and digital play sectors.
Jim Wagner, manager of Evergreen, said, “Heelys is an iconic brand recognized around the world for its innovative skate shoes. The brand embodies an active, social, fun lifestyle that we value highly. I’ve seen the joy these shoes bring to kids of all ages — it’s truly magical, and we are incredibly excited to build on that foundation with product innovation, licenses and creative partnerships.”
Excluded from the sale are Heelys’ cash and marketable securities totaling $58.2 million, as of June 30.
Heelys’ shares surged 20 percent to $2.22 in Tuesday morning trading on the news.