Differential Brands Group Inc. completed the acquisition of Swims AS, a Scandinavian lifestyle brand best known for its range of fashion-forward, water-resistant footwear and sportswear. Swims distributes its full range of footwear, swimwear, outerwear, ready-to-wear and accessories worldwide through high-end department stores, independent specialty stores, and luxury resorts. The Company also sells product through its own website and through ten licensed Swims-branded stores.
The transaction is expected to be immediately accretive for Differential Brands. The acquisition and related expenses were financed through a combination of Differential’s common stock totaling approximately 700,000 shares, certain warrants and cash. Differential is also pleased to acquire such a high-quality brand at an attractive contribution multiple below 6.5 times. The Company obtained a $13.0 million bridge financing facility in order to facilitate the closing of the transaction.
Michael Buckley, Chief Executive Officer of Differential Brands, commented, “This marks the first acquisition for Differential Brands, and we are thrilled to be adding Swims, a sought-after lifestyle brand, to our portfolio. Swims’ unique, global footprint in the water-resistant footwear and apparel category aligns well with our strategy to build a portfolio of complementary, premium brands that consumers are passionate about. We believe that Swims offers significant growth opportunity through increased brand awareness and continued expansion in both the U.S. and international markets. The transaction also adds a strong sales network around the world to build our existing Robert Graham and Hudson businesses.”
Alex Eskeland, President and Co-Founder of Swims, commented, “We are excited to partner with the Differential Brands team to capitalize on their expertise and infrastructure, as well as leverage their omni-channel distribution strategy to expand Swims’ presence, including in the U.S. We’re also looking forward to helping diversify the geographic presence of Robert Graham and Hudson through our well-developed international network.”
