Wolverine World Wide, Inc. announced additional steps in the ongoing streamlining of its brand portfolio, including the sale of Hush Puppies intellectual property in China, Hong Kong and Macau, and the sale of its US Wolverine Leathers business. The portfolio transformation is expected to help the company become more efficient, direct more resources to its growth brands, reduce debt and increase long-term shareholder value. “These transactions are the latest actions in our ongoing effort to reshape our portfolio and target our most meaningful opportunities,” said Mike Stornant, Executive Vice President and CFO of Wolverine Worldwide. “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.”
Asian sublicensee acquires Hush Puppies trademarks etc.
Wolverine Worldwide has entered into a definitive agreement to sell the Hush Puppies trademarks, patents, copyrights and domains in China, Hong Kong and Macau to current sublicensee Beijing Jiaman Dress Co. Ltd. for approximately $58.8 million. As part of the transaction, the two parties have entered into a licensing and cooperation agreement that provides for mutual engagement and brand management of the Hush Puppies brand in the region. Wolverine will continue to own and operate the Hush Puppies brand in the rest of the world. The transaction is expected to close in the coming weeks, subject to customary closing conditions. “Hush Puppies remains an important brand in our portfolio, and we are committed to growing it through strong global licensing partnerships and expanding our connections with local consumers,” said Chris Hufnagel, President and CEO of Wolverine Worldwide.
New Balance takes over US Leathers business
The company also completed the sale of its US Wolverine Leathers business to longtime customer New Balance for total proceeds of approximately $6 million. The company has assigned Wolverine’s US tanning contracts to New Balance and continues to evaluate alternatives for Wolverine Leathers’ non-US business.
The transactions follow the recently completed sale of Keds to Designer Brands Inc., the parent company of footwear retailer DSW, and the previously announced process of strategic alternatives for the Wolverine brand Sperry.
