US: K-Swiss to buy rest of Palladium for EUR5m
Athletic footwear firm K-Swiss is to buy the remaining 43% stake in French shoe brand Palladium SAS for EUR5.0m (US$7.1m) in cash.
The deal also includes a potential earn out based on Palladium's earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2012.
Last July K-Swiss bought a 57% equity interest in the firm, which designs and sells fashion footwear, as well as the trademarks to the brand in the United States and Canada.
"With an imminent launch for the brand in the United States, this is the right time to exercise our option to acquire full ownership of Palladium," said Steven Nichols, chairman of the board and president.
He added the firm intends to grow Palladium "with a very select distribution and an appropriate marketing program."
Last month K-Swiss said first quarter sales of the Palladium brand were $7.4m with a net loss of $58,000. Futures orders were $9.64m.
The company added that the purchase, which is expected to close later this month, will lead to a second quarter loss of $2.6m.
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