Crocs, Inc. has entered into a definitive agreement to acquire 100% of the membership interest of Jibbitz, LLC for $10 Million in cash, plus a potential earn-out of up to $10 Million based on Jibbitz hitting certain earnings targets. Headquartered in Boulder, Colorado, Jibbitz is a family operated business that specializes in the customization of Crocs footwear.
In addition to the purchase agreement, which is scheduled to close in December, Crocs and Jibbitz have also entered into an endorsement agreement that takes effect immediately. This agreement provides for Crocs' public endorsement of Jibbitz on a worldwide basis. The endorsement agreement also allows Jibbitz to access Crocs' network of distributors and retailers as well as utilize its warehousing and logistics infrastructure throughout the world.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented, “Jibbitz has done a great job of creating a special niche in the footwear accessories industry and we are excited to join forces with them as we look to further expand the originality and uniqueness of the Crocs line of products. Much like Crocs, Jibbitz created a new market segment and was able to immediately capitalize on their creativity in the marketplace. I commend the Jibbitz team on their ability to develop this homegrown business into the market leader that it is today and I look forward to their successful integration into the Crocs family.”
“We are extremely excited to extend the Jibbitz brand and community spirit through this partnership with Crocs,” commented Sheri Schmelzer, Jibbitz Founder. “Jibbitz specializes in unique designs that fit the lifestyle of the Crocs consumer and allow them to personalize their footwear regardless of age, gender or style preference. We can't think of a better way to leverage our success and reach more target customers than to join the Crocs family and be a part of their future vision.”
Jibbitz will operate as a wholly owned subsidiary of Crocs, Inc. following the closing and Founders Rich and Sheri Schmelzer will remain with Jibbitz as President and Chief Design Officer respectively. The transaction is subject to customary closing conditions and regulatory approvals.
