Wolverine Worldwide has announced the sale of its U.S. Wolverine Leathers division to New Balance in a deal valued at approximately $6 million.
In an official announcement, Wolverine Worldwide highlighted New Balance’s long-standing loyalty as a customer and confirmed the transfer of all of Wolverine’s U.S. tannery agreements to New Balance.
Additionally, the company intends to “explore alternatives” for its non-U.S. leather business. In December 2022, Wolverine Worldwide announced its plans to license or divest the Wolverine Leathers and Keds businesses. Subsequently, in February 2023, the company successfully sold Keds to Designer Brands.
Wolverine Worldwide is now also actively divesting its Hush Puppies intellectual property in China, Hong Kong, and Macau.
Wolverine Worldwide is set to transfer all Hush Puppies trademarks, patents, copyrights, and domains in those specified regions to its existing sublicensee, Beijing Jiaman Dress Co., Ltd., in a deal valued at around $58.8 million, as outlined in the statement. Under this agreement, both companies will collaborate on “engagement and brand stewardship of the Hush Puppies brand in the region” for the Hush Puppies brand within the designated region. Importantly, Wolverine Worldwide will retain ownership and management of the Hush Puppies brand across the rest of the world.
These actions result from a previous announcement made earlier this year, in which Wolverine Worldwide revealed its intent to explore strategic options for its Sperry brand of boat shoes.
“These transactions are the latest actions in our ongoing effort to reshape our portfolio and target our most meaningful opportunities,” Mike Stornant, Wolverine Worldwide’s executive vice president and chief financial officer, said in a statement. “We continue to streamline our organization and become more efficient so that we can direct greater resources into our growth brands, pay down debt, and enhance long-term shareholder value.”
The deal is anticipated to be finalized within the upcoming weeks.
