Footwear business Heelys is to be sold to private equity firm the Evergreen Group in a US$13.9m cash deal.

Evergreen Group will acquire the operating assets of Heelys and then liquidate the company. The footwear maker's $58.2m cash and marketable securities will not be included in the assets.

The transaction is subject to various closing conditions.

The agreement contains a 30-day period during which Heelys will evaluate and enter into negotiations with third parties that offer alternative proposals.

Capital Southwest Venture Corp and another stockholder of Heelys, who collectively hold 35.1% of the issued and outstanding shares have entered into agreements with Evergreen, to vote their shares in favour of the transaction.

"After a thorough analysis of various strategic alternatives, the board has determined that this all-cash transaction represents a great outcome for the company and its stockholders," said Heelys president and CEO Tom Hansen.

Roth Capital Partners is serving as exclusive financial advisor to Heelys, while Gardere Wynne Sewell is acting as legal advisor.

The wheeled shoe maker saw its second quarter net losses widen in August as the company continued with restructuring efforts.