US: Sequential Brands to acquire Heelys for $63.2m
Sequential Brands, which owns the William Rast and People's Liberation labels, is to acquire wheeled footwear maker Heelys for US$63.2m - a deal that overtakes a separate offer the company was considering.
Heelys in October said it would be sold to private equity firm Evergreen Group for $13.9m, but has now agreed to pay Evergreen a termination fee, which will be reimbursed by Sequential.
Under the deal announced today (10 December), Heelys will sell the entire company, which may be expanded into a global lifestyle brand. In contrast, the bid tabled by Evergreen would have led to the liquidation of Heelys.
"The Sequential transaction represents an attractive outcome and is in the best interest of Heelys stockholders," said Heelys president and CEO Tom Hansen.
"Their all-cash offer provides our stockholders with a fixed cash value and eliminates the need to proceed with the previously announced plan of dissolution."
Sequential Brands CEO Yehuda Shmidman added: "Fitting with Sequential's brand-management business model, we have identified our long-term worldwide licensing partner for the core category of footwear, and will announce the partner and the team managing the Heelys brand shortly."
Capital Southwest Venture Corp and another stockholder of the Heelys, who between them own a 35.1% stake in the company, have agreed to vote in favour of the acquisition.
The deal, which is subject to customary closing conditions, is expected to close in the first quarter of 2013.
Earlier this year, Sequential Brands made its first move into the action sports sector after agreeing an $8.6m deal to buy the DVS brand from DVS Shoe Company.
Sequential Brands, owner of the William Rast and People's Liberation brands, has seen its first-quarter losses widen after acquisition costs offset higher revenue. ...
- Marks & Spencer to extend mobile phone monitoring
- China tightens on corporate social responsibility
- Outdoor industry's future must be more inclusive
- Factoring: a lifeline for apparel suppliers?
- Tesco's H1 profit plunge: What the analysts say
- Cambodia clothing factory collapse injures eight
- Adidas "Reebok sale" would be admittance of defeat
- H&M and The North Face commit to responsible down
- Bangladesh taps factory inspectors ahead of review
- Collapsed Cambodia factory had structural issues
- Ethiopia – the emerging textile and clothing industry
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Prospects for the Textile and Clothing Industry in Vietnam
- Wool in the 21st Century: new prospects for a familiar fibre