New York—Sequential Brands Group reported Thursday that in addition to closing its $63 million deal to buy Heelys Inc., the wheeled footwear company, its new global footwear license with BBC International became effective, too.
BBC is a leading global kids footwear company with other prominent footwear licenses, including Polo Ralph Lauren, Warner Brothers and Marvel.
Yehuda Shmidman, chief executive at Sequential, and Bobby Campbell, BBC’s founder and managing member, jointly stated, “We see many opportunities to leverage Heelys’ compelling brand heritage and patented products as we re-launch the Heelys brand with our retail partners around the world.”
Founded in 1999, Heelys has been a breakout success in the world of action sports among children and teens with its wheeled footwear. Heelys’ core product, HEELYS-wheeled footwear, is patented dual purpose footwear that incorporates a stealth, removable wheel in the heel.
Heelys has been a takeover target for more than a year. The company rejected a $5.25 a share buyout offer from Skechers USA in 2008.
Sequential made its bid for Heelys in early December last year in a last minute deal that beat Evergreen Group Ventures, a private equity firm, which had offered 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.
Instead, Sequential, which intends to operate Heelys as a subsidiary, acquired all of the outstanding shares of common stock of Heelys for $2.25 a share in cash. On closing, Heelys had approximately $57.5 million in cash. The balance of the purchase price was funded with cash from Sequential.
About Sequential Brands Group
Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands that presently include William Rast, People’s Liberation, DVS and Heelys. Sequential has licensed and intends to license its brands in a variety of consumer categories to retailers, wholesalers and distributors in the United States and in certain international territories. www.sequentialbrandsgroup.com.