Crocs, Inc. has entered into a definitive agreement to acquire the Bite Footwear brand for $1.75 million in cash, plus a potential earn-out of up to $1.75 million based on Bite hitting certain earnings targets over a three-year period. Bite markets and sells its footwear worldwide in five categories including Golf, Adventure, Healthy Lifestyle and Water Sports.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented “Over the past 10 years Bite has created a portfolio of exciting and innovative footwear products that we believe will be a terrific compliment to our existing business. Similar to Crocs, Bite Footwear utilizes patented technology to provide consumers with comfort, support and functionality across several target markets. We are confident that between their R&D and design capabilities and our global manufacturing base and retail distribution network we can take this brand to the next level.”
Crocs plans to incorporate its proprietary closed cell resin material, Croslite(TM), into Bite's product collection, further expanding the benefits of the material into new categories. In addition, Bite's OrthoSport product line will complement and expand Crocs RX(TM) medical line.
“We are excited to join the Crocs team, and see this transaction as a tremendous opportunity to join the ranks of Crocs' existing lines of unique products, its terrific management team, large distribution channels, and sourcing capabilities,” said Dale Bathum, Founder of Bite Footwear. “With Crocs, we will have the resources to bring more innovative ideas to market and to continue to spread the word about the importance of good foot health and an active lifestyle, helping to further contribute to Crocs' success.”
Bite Footwear will operate as Bite, Inc. a wholly owned subsidiary of Crocs, Inc. following the closing and Bite Footwear Founder Dale Bathum will remain with Bite. The transaction is subject to customary closing conditions and regulatory approvals.
