Crocs Inc. has entered into a deal to acquire the privately owned footwear brand Hey Dude. The deal is valued at $2.5 billion and expected to close in Q1 of 2022.
The deal marks Crocs’ largest acquisition to date. Crocs acquired Jibbitz, the company that makes accessories for the clogs, in 2006.
Like Crocs, Hey Dude is a comfort-focused footwear brand that has what Crocs executive see as a strong potential for growth. According to Crocs’ investor presentation regarding the deal, the Hey Dude acquisition will help Crocs diversify its portfolio and build upon Crocs’ already strong digital penetration. It also turns Crocs into a multi-brand company for the first time.
“We are thrilled to add another high-growth, highly profitable brand to our portfolio,” said Crocs CEO Andrew Rees in a statement. “We believe Hey Dude’s casual, comfortable and lightweight products are aligned to long-term consumer trends and are a perfect fit for Crocs.”
Crocs plans to build Hey Dude into a $1 billion brand by 2024, a goal that complements Crocs’ previously announced plan to achieve $5 billion in sales by 2026. While Hey Dude is privately owned, Crocs pointed out the company’s impressive growth in revenue and profits in recent years. 43% of Hey Dude’s sales are currently online and the brand projects $570 million in revenue in 2021.
“We founded Hey Dude in Italy in 2008, to develop comfortable, versatile and accessible footwear,” said Hey Dude founder and CEO Alessandro Rosano. “We are proud of the brand we built and are honored to become a part of Crocs, a company perfectly positioned to take Hey Dude to the next level. We have long admired the Crocs business and are excited to have them bring Hey Dude’s comfort, craftsmanship, and style to consumers globally.”
Once under the Crocs banner, Hey Dude will still operate independently with Rosano as strategic advisor and creative director. Former CCM Hockey CEO Rick Blackshaw has been tapped as Hey Dude’s new EVP and brand president.