Crocs (CROX) to buy Italy's HEYDUDE for $2.5bn
15:35, 23 December 2021
Footwear maker Crocs on Thursday agreed to buy privately-owned casual shoe brand HEYDUDE for $2.5bn (£1.9bn). The transaction values the Italian company at less than 15 times enterprise value to EBITDA.
HEYDUDE was founded in Italy in 2008 by Alessandro Rosano to develop comfortable and accessible footwear.
Crocs said the acquisition will be funded by $2.05bn in cash and $450m in Crocs shares issued to Rosano. To raise cash, the Bloomfield, Colorado-based company expects to enter in a $2bn term loan and borrow $50m under its revolving credit facility.
‘A perfect fit for Crocs’
”We believe HEYDUDE's casual, comfortable and lightweight products are aligned to long-term consumer trends and are a perfect fit for Crocs,” Crocs' CEO Andrew Rees in a press release.
“We are proud of the brand we built and are honored to become a part of Crocs, a company perfectly positioned to take HEYDUDE to the next level,” HEYDUDE founder and CEO Alessandro Rosano said.
HEYDUDE will continue to operate as a standalone division once the deal closes and Rosano will act as strategic adviser and creative director.
Closing is expected in the first quarter of next year, subject to customary conditions and regulatory approval.
HEYDUDE is expected to add approximately $700m–$750m in pro forma 2022 revenue.
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Footwear executive appointment
Crocs also said Rick Blackshaw will join HEYDUDE as executive vice president and brand president. Blackshaw brings over 25 years of footwear experience with positions at Sperry, Keds and the Chuck Taylor division of Converse.
Crocs makes casual footwear for men, women and children. Since its inception in 2002, Crocs has sold more than 720 million pairs of shoes in more than 90 countries around the world.
As at 10:40 ET (UTC-5) Crocs stock fell 15% to $118.74 per share.