The Adidas Group has mandated an investment bank, Guggenheim Partners, to review proposals for the acquisition of Rockport, following an increasing number of inquiries by potential investors in the past few months. The candidates are said to be other shoe companies as well as private equity firms.
Adidas bought the Massachusetts-based casual footwear company in 2003 as part of its $4 billion purchase of Reebok. The divestiture would mirror in some ways Nike's recent disposal of Cole Haan, and according to observers, it could net proceeds of around €300 million.
Herbert Hainer, chief executive of the Adidas Group, said that Rockport had become an attractive target after the considerable reorganization that it has undergone under Adidas' ownership.
Rockport's sales went up last year by only one percent to €289 million terms of euros, but rose by 6 percent in local currencies. Its annual operating profit before amortization (Ebitda) is said to have improved over the years to an annual level of somewhere between $30 million and $40 million. Adidas' annual report for last year says that the brand was able to raise product margins but gave no details.
The U.S. market takes about half of Rockport's turnover. The brand trades in more than 55 countries. Other major markets are Russia, Canada, Japan and South Korea.
