US apparel and footwear company Rocky Brands has struck a deal to acquire the performance and lifestyle footwear business of Honeywell International, including The Original Muck Boot Company and Xtratuf footwear brands, for US$230m.

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.

For 2020, net revenue of the acquired brand portfolio is estimated to be about $205m with an EBITDA of about $24.5m. The business grew in 2020 with performance accelerating throughout the year, culminating in strong top-line growth in the fourth quarter.

"With the acquisition of The Original Muck Boot Company along with the Xtratuf, Servus, Neos, and Ranger brands, we will greatly enhance our powerful portfolio of footwear brands and significantly increase our sales and profitability," says Jason Brooks, president and CEO Rocky Brands.

"We're acquiring a well-run business with a corporate culture and a customer base similar to ours, which provides meaningful growth opportunities within our existing categories as well as an entrée into new market segments. Its innovative and authentic product collections complement our existing offering with minimal overlap, which will allow us to strengthen our wholesale relationships and serve a wider consumer audience."

At the same time, Brooks says the firm plans to leverage Rocky's fulfilment capabilities to improve distribution of the new brands to wholesale customers and accelerate direct-to-consumer penetration. 

Seven management employees of Honeywell's lifestyle footwear business located in Westwood, Massachusetts will join Rocky Brands.

The purchase is expected to close in the first quarter of 2021.