US apparel and footwear company Rocky Brands has completed its acquisition of the performance and lifestyle footwear business of Honeywell International, including The Original Muck Boot Company and Xtratuf footwear brands for US$230m.
For 2020, the acquired brand portfolio generated net revenue of approximately US$205m with EBITDA of approximately $24.5m. The business grew in 2020 with performance accelerating throughout the year, culminating in strong top-line growth in the fourth quarter.
“We are thrilled to have completed this transformative acquisition,” says Jason Brooks, president and CEO of Rocky Brands. “The Original Muck Boot Company, Xtratuf, Servus, NEOS and Ranger brands are great additions to our existing portfolio while the total business nearly doubles the size of Rocky Brands’ annual revenues. We look forward to working closely with our newest team members to capitalize on the many opportunities we believe exist to drive strong growth, increased earnings power, and enhanced stakeholder value over the near- and long-term.”
The purchase was funded with an $80m senior secured asset-backed credit facility with Bank of America, a $130m senior secured term loan facility with The Direct Lending Group of TCW Asset Management Company, and cash on hand.
The acquisition will add to Rocky Brands’ performance footwear lineup – which already includes Rocky, Georgia Boot and Durango – and is expected to be immediately accretive to gross margins and earnings per share.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData