Wolverine Completes $2 Billion Purchase of Collective Brands

Rockford, MI—Wolverine World Wide Inc., along with investment firms Golden Gate Capital and Blum Capital Partners said today they had completed their $2 billion acquisition of Collective Brands Inc., owner of Payless ShoeSource and the Sperry Top-Sider, Saucony, Stride Rite and Keds brands.

Under the deal which was announced in May, Collective Brands’ shoe wholesale division will be separated from its retail operations.

Wolverine, whose brands include Merrell, Sebago and Hush Puppies, said it will acquire Collective Brands’ Performance + Lifestyle Group (PLG), which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands. The division will continue to operate out of Lexington, Mass.

Meanwhile, the investment firms of Blum Capital Partners and Golden Gate Capital will jointly own the operations of Payless ShoeSource and Collective’s international licensing business, which will together operate as a standalone business known as Payless Holdings. Payless will continue to be headquartered in Topeka, Kan., and the licensing business in Englewood, Colo.

The deal includes $21.75 a share in cash for Collective shareholders and the assumption of the company’s debt, for a total value of about $2 billion.

Wolverine said it expects the acquisition will add 35 to 50 cents a share to its 2013 fiscal year earnings and 60 to 80 cents a share in 2014.

 

 

 

 

 

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