Crocs to purchase HEYDUDE, a privately-owned casual footwear brand for $2.5 billion, according to a press release by Crocs on Thursday.
- Andrew Rees, Chief Executive Officer of Crocs, stated that the acquisition was important in adding another high-growth, highly profitable brand to the portfolio.
- Rees further stated that HEYDUDE’s casual, comfortable, and lightweight products are aligned to long-term consumer trends and are the perfect fit for Crocs.
- Anne Mehlman, Crocs Executive Vice President, and Chief Financial Officer, stated that HEYDUDE has posted incredible growth in revenue and profits over the last few years.
- Mehlman further expected that the combined business will generate significant free cash flow, helping the company to deleverage while investing to support future growth.
- The purchase price agreement of $2.5 billion will be financed by $2.05 billion in cash and $450 million in Crocs shares issued to Mr. Rosano.
The transaction is expected to be finalized in the first quarter of 2022, subject to regulatory approval. CROX down -14.67%