Rocky Brands Inc. has divested one of its brands.
The Nelsonville, Ohio-based company announced on Monday that it sold Servus, one of its boot brands, to PQ Footwear, LLC, a subsidiary of Industrias PetroQuim, SA. The deal closed on March 30 and the terms were not disclosed. Rocky Brands said the proceeds were used to pay off debt.
Servus specializes in waterproof and safety-certified work boots.
Rocky Brands, best known for its work and military boots, acquired Servus in March 2021 in a deal to buy the performance and lifestyle footwear business from Honeywell International Inc. for $230 million in cash and debt. Along with Servus, the transaction included Honeywell’s Original Muck Boot Company and the Xtratuf, Neos and Ranger boot brands.
Last year, Rocky Brands announced a round of layoffs related to the Honeywell deal. After conducting a cost-savings review of the group, Rocky Brands said it identified several “operational synergies and cost saving opportunities,” including closing the Boston offices that it gained in the acquisition and reducing the non-manufacturing headcount at the acquired brands by approximately 13%.
At the time, Rocky Brands said these actions would yield annualized savings of between $3 million and $4 million.
“These cost-saving measures will allow us to better convert our top-line performance into enhanced margins and profitability,” said Rocky CEO Jason Brooks in a statement. “We are now in a stronger position to more efficiently capitalize on near-term marketplace opportunities while remaining agile and flexible for the future.”
For 2022, Rocky Brands reported that net sales increased 19.7% to $615.5 million, which included $179 million in net sales from the acquired brands from Honeywell. Adjusted net income decreased 26% to $24.1 million, with $3.27 per diluted share.
Rocky Brands’ portfolio also includes the Rocky, Georgia Boot, Durango and Lehigh brands.