After months of speculation, Collective Brands Inc. is being acquired by Wolverine World Wide Inc., Blum Capital and Golden Gate Capital for $2 billion, including the assumption of debt.
The per-share cost is about $21.75 in cash. Under the terms of the deal Collective Brands will be split into two parts.
After closing, Wolverine will acquire Collective Brands’ Performance & Lifestyle Group, which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Keds and Stride Rite brands.
“Our company is thrilled to add these four iconic brands to our proven global platform,” Blake Krueger, Wolverine chairman and CEO, said in a statement. “This transaction provides dynamic portfolio expansion and diversification, and significant additional horsepower in five of our targeted growth areas: women’s, athletic, casual, kids’ and retail. This transformational acquisition creates a powerful array of leading lifestyle brands that is balanced across product categories, genders and target consumers, with enormous opportunities for domestic and international growth.”
Blum Capital and Golden Gate will jointly acquire the operations of Payless ShoeSource and Collective Licensing International, which had a combined revenue of about $2.4 billion in the fiscal year ended Jan. 31.
For more on the deal, check back throughout the day.