Xtep Intl. is paying Wolverine Worldwide $61 million for its share of a joint venture that the two companies established in 2019 for the distribution of the Saucony and Merrell brands in Greater China, Hong Kong and Macau. Additionally, due to the early success and profitability of the Saucony brand in China, Wolverine’s deal includes the acceleration of an existing option to sell minority ownership in the entity that owns the Saucony intellectual property in China to Xtep.
Publicly traded on the Hong Kong Stock Exchange since 2008, the group’s portfolio of footwear brands includes Xtep, K-Swiss, Palladium, Saucony, and Merrell to market to China’s mass market, athleisure and professional sports segments through a network of more than 8,200 stores worldwide.
Under terms of the transaction between the two companies, Xtep will source the products launched for the Saucony and Merrell brands by Wolverine Worldwide but also design and develop customized collections that cater to Chinese consumers. This special assortment currently accounts for about 50 percent of the brands’ revenues in China.
Besides the Xtep transaction that is expected to close before Jan. 1, Wolverine has signed a definitive agreement to sell its Asia-based Wolverine Leathers business to Interhides Public Company Ltd., a current materials vendor for the company, for $9 million.
