Wolverine Worldwide has divested Keds, which it acquired in 2012 as part of its $1,249.5 million acquisition of the assets of the former Performance Lifestyle Group (PLG), for $83.6 million in cash to North American retailer Designer Brands Inc. The sale also includes the Pro-Keds athleisure brand and Keds’ e-commerce business.
In a separate transaction, the Merrell and Saucony parent has agreed to grant an exclusive license for its Hush Puppies footwear brand in the U.S. and Canada to the retailer in a pact that commences on July 1. Both deals are projected to net Wolverine more than $90 million in cash. The group intends to use the proceeds to pay down debt and strengthen its capital structure.
The transactions serve to expand Designer Brands’ portfolio of owned brands, extending its reach into the casual and athleisure segments. Recently, the retailer added the Le Tigre and Topo Athletic brands. The group has been Keds’ largest wholesale customer.
“Our growing strength in owned brands is evident, given that 12 months ago, the athleisure category was a massive white space opportunity for us, and now we control high-quality brands across multiple price points,” said Doug Howe, incoming president, and CEO of DSW (Designer Shoe Warehouse) in a statement.
