Dallas—Just days before its shareholders were scheduled to vote on a private equity firm’s acquisition of its assets, Heelys, the wheeled-footwear maker, received a “superior” offer from Los Angeles-based Sequential Brands.
Originally, the deal for Heelys was for Evergreen Group Ventures to pay $13.9 million in cash. Evergreen, which intended to continue to market the Heelys brand, would have dissolved the rest of the company.
But Sequential, owner of William Rast, People’s Liberation and DVS Action Sports footwear, offered Friday $2.25 a share for Heelys, which would amount to about $63.2 million.
In light of the offer, a special shareholder meeting for Heelys scheduled this week was cancelled.
“The Sequential transaction represents an attractive outcome and is in the best interest of Heelys stockholders,” Tom Hansen, Heely president/ceo said. “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.”
Heelys is expected to pay a $475,000 termination fee to end the Evergreen deal, a fee that Sequential said it would reimburse Heelys for.
The deal with Sequential is expected to close in first quarter next year.
Heelys had been pursuing a sale since last December previously rejected a $5.25 a share buyout offer from Skechers USA in 2008.