Rocky Brands Inc. has signed a definitive asset purchase agreement with Kommonwealth Inc. to acquire certain assets including the Creative Recreation trademark of the lifestyle brand best known for its fashion sneakers.
The total purchase price of approximately $11 million is subject to a working capital adjustment. The acquisition, which will be fueled by Rocky Brand’s existing cash balance and funds available under its existing revolving credit facility, is expected to be accretive to earnings in 2014.
The publicly traded company’s acquisition is expected to be completed by December 2013 subject to customary closing conditions.
“The management team of Creative Recreation led by founder and president Robert Nand has done an excellent job identifying and serving a growing category in the footwear industry,” said David Sharp, president and CEO of Rocky Brands. “We believe by combining Rocky’s strong operating platform and access to capital with Creative Recreation’s design expertise we can strategically expand their business both domestically and overseas.”
Added Nand, “I look forward to working closely with David and his team to leverage the strengths of our two organizations in order to take the Creative Recreation brand to the next level.”