Crocs, Inc. announced it has completed its previously announced acquisition of HeyDude, a privately-owned casual footwear brand. The closing is effective February 17, 2022.
Crocs said, in a statement, “The acquisition of HeyDude adds a second high-growth, highly profitable brand to the Crocs portfolio. We intend to leverage our global presence, innovative marketing and scale infrastructure to grow HeyDude and create significant shareholder value.
“HeyDude is expected to be immediately accretive to our high revenue growth, industry-leading operating margins and earnings. HeyDude is expected to deliver revenues of approximately $700 to $750 million, including the period of time prior to the closing of the acquisition, and $620 to $670 million on a reported basis with consolidated financials beginning February 17, 2022.”
Transaction Financing
The acquisition was funded by $2.05 billion in cash and 2,852,280 shares issued to HeyDude’s founder.
Concurrent with the transaction, Crocs closed on a $2.0 billion Term Loan B that matures in 2029 and that will bear interest at SOFR (with a SOFR floor of 0.50 percent) plus 3.50 percent increased commitments under its Senior Revolving Credit Facility by $100.0 million to a total of $600.0 million and drew $50.0 million under the Senior Revolving Credit Facility to fund the balance of the cash consideration for the acquisition.
Photo courtesy HeyDude
