Crocs To Acquire Heydude For $2.5B

Words by Retail Bum

Crocs To Acquire Heydude For $2.5B
Crocs To Acquire Heydude For $2.5B
Crocs is hoping to take advantage of the ongoing surge in demand for casual shoes with its acquisition of footwear brand Heydude.

The footwear giant will pay $2.05 billion in cash and $450 million in Crocs shares to Heydude’s founder and chief executive, Alessandro Rosano. The company plans to fund the deal by utilizing a $2 billion loan facility and borrowing $50 million from its revolving credit facility.

“Even though Crocs management has done an amazing job with one brand, they now have another to add revenue and maybe even outperform Crocs in the future… Another plus is casual footwear is still outperforming,” said Jane Hali, chief executive officer of Jane Hali & Associates.

Heydude, which is privately owned, was founded in 2008 and has become popular for its lightweight casual shoes. The company brings in around 43% of its sales from online channels and it expects to generate $570 million in revenue this year.

Crocs, in comparison, is more reliant on its brick-and-mortar stores. The rubber clog maker sees 37% of its sales come in through online channels. Crocs’ revenue is expected to grow by up to 65 percent from $1.39 billion last year, according to Reuters.

Through the deal, which is expected to close in Q1 2022, Heydude will continue to operate as a standalone division.

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