A consortium comprised of Wolverine Worldwide, Golden Gate Capital and Blum Capital Partners today announced that it has completed the acquisition of Collective Brands for approximately $2 billion, including the assumption of debt.
Under the agreement first announced on May 1, 2012, investment firms Golden Gate Capital and Blum Capital will jointly own the operations of Payless ShoeSource and Collective Licensing International, which together will operate as a standalone entity known as Payless Holdings.
Payless Holdings is one of the world’s largest family footwear specialty retailers with over 4,300 stores globally, and is comprised of Payless ShoeSource and Collective Licensing International. Payless ShoeSource offers a range of shoes and accessories at affordable prices to budget-conscious consumers. Payless is headquartered in Topeka, KS (www.payless.com).
Collective Licensing International (CLI) is a global brand development and licensing company that specializes in building, launching, licensing and growing brands, including Airwalk®, Above The Rim®, Clinch Gear®, Vision Street Wear®, SIMS®, Lamar®, LTD®, World Snowboarding Championships™ and Hind® brands. CLI is based in Englewood, CO (www.collectivebrands.com).
Wolverine Worldwide will acquire Collective Brands’ Performance + Lifestyle Group (PLG) which includes the wholesale and retail operations of the Sperry Top-Sider®, Saucony®, Stride Rite® and Keds® brands. PLG will continue to operate out of Lexington, MA.
Golden Gate Capital targets companies across a range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. The firm has approximately $12 billion of capital under management and is based in San Francisco, CA (www.goldengatecap.com).
Blum Capital Partners has $2 billion of capital under management and has invested in a wide variety of businesses through multiple going-private transactions. The firm was founded in 1975 and is based in San Francisco, CA (www.blumcapital.com).
Wolverine World Wide is one of the world’s leading marketers of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. The company’s portfolio of brands includes: Merrell, Hush Puppies, Wolverine, Sebago, Cushe, Chaco, Bates, HYTEST, and Soft Style. The company also is the global footwear licensee of popular brands including CAT, Harley-Davidson and Patagonia. The company’s products are carried by retailers in the U.S. and globally in more than 190 countries and territories. The company is based in Rockford, MI (www.wolverineworldwide.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-10-12