K•Swiss Inc. has signed a definitive agreement to purchase 57% of the equity interests of Palladium SAS from its stockholders for a total purchase price of approximately €5.3 million in cash ($8.3 mm), including a loan of €3.6 million ($5.6 mm). In addition, K•Swiss has agreed to acquire the remaining 43% of Palladium based on a formula driven by Palladium’s EBITDA for the year ending December 31, 2012. Closing of the 57% equity purchase is expected by July 1, 2008.


Palladium, based in St Priest, France, designs and sells fashion footwear under the Palladium brand primarily in Europe. Palladium revenues are projected to be approximately €15 million ($20.0 mm) for the fiscal year ending September 30, 2008 and Palladium is currently profitable. In a separate transaction, K•Swiss previously acquired the Palladium trademarks for the United States and Canada for $6.0 million in cash.

Commenting on the announcement, Steven Nichols, Chairman of the Board and President, said, “The acquisition of Palladium is a strong strategic fit for us. This growth investment is marginally accretive and consistent with our stated goal of allocating capital to opportunities that offer long-term growth.”