Crocs, Inc. has entered into a definitive agreement to acquire 100% of the membership interest of Ocean Minded, LLC for $1.75 million in cash, plus a potential earn-out of up to $3.75 million based on Ocean Minded hitting certain earnings targets over a three year period. Leveraging its strong network of retailers and diverse distribution, Crocs will look to expand the Ocean Minded brand worldwide.
Founded in 1996, Ocean Minded is a designer and manufacturer of high quality leather and EVA based sandals primarily for the beach, adventure and action sports markets. The company utilizes recycled and recyclable materials whenever possible and is well known in the action sports industry as a leading advocate for environmental awareness and responsibility. Ocean Minded Sandals target primarily young men and young women who seek high quality fashion sandals with an emphasis on style and comfort.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented “We are excited about this transaction as it provides us with a new platform for growth and immediate entrée into the fast growing surf & skate footwear category. Over the past decade the team at Ocean Minded has successfully developed a vibrant business and cultivated a strong following among young consumers up and down the West Coast with minimal investments in marketing and advertising. We believe by combining forces we can leverage each organizations strengths to further evolve both the Crocs and Ocean Minded brands and expand our reach throughout the United Stated and overseas.”
“We are extremely pleased to become part of the Crocs family. We have come to know the team well and have the utmost respect for their accomplishments thus far and the significant opportunities yet to develop through a well thought out strategy,” said Gary Ward, President of Ocean Minded. “For Ocean Minded, with the substantial infrastructure, scale, material technology and distribution of Crocs we will be able to execute on our strategy of becoming a segment leader in the beach sandal category and furthering to contribute to Crocs success”.
Ocean Minded will operate as a wholly owned subsidiary of Crocs, Inc. following the closing Founder Robert Allison will remain with Ocean Minded. The transaction is subject to customary closing conditions and regulatory approvals.
