Weyco Group, Inc. acquired The Combs Company last week in a cash deal that unites two American families that have been making footwear for generations.


The deal diversifies Weyco, owner of the Florsheim and other brown shoe brands, into the faster growing outdoor, agriculture and work markets as many Americans office workers continue to shift from suits and oxfords to more casual attire.


Publicly-traded Weyco paid $29.4 million in cash at closing, plus assumed debt of approximately $3.5 million for Combs, which owns the Bogs and Rafters brands. The Combs family, which will stay on to run the business, also stands to earn payouts in two and five years contingent on the business achieving certain goals. Weyco financed the deal with available cash and borrowings under its revolving line of credit.


Bogs' sales for its most recent fiscal year were approximately $27 million, mostly from sales of Bogs’ line of waterproof boots and shoes. Weyco expects the acquisition to contribute up to 20 cents per share to earnings this year, excluding the impact of certain purchase accounting adjustments as well as transaction and integration costs.
Bill Combs, the founder and CEO of Bogs, will remain with Bogs as president of Bogs/Rafters. Sue Combs will be manager of design and development.  Sons Dustin and Riley Combs will each stay on as vice presidents of sales.


Bogs boots, which combine rubber lasts with a signature 4-way stretch neoprene booty, have carved out a niche among industrial workers, outdoor enthusiasts and mothers buying warm, waterproof boots for their kids.


“BOGS' success in the various markets has put the brand on a strong growth track in recent years which is a compelling accomplishment given the prevailing retail environment,” said Tom Florsheim, Jr., chairman and CEO of the Weyco.


Bill Combs said Weyco will help Bogs reach its full potential. “With Weyco providing a modern distribution center, superior systems, administrative functions and capital, we can continue our rapid growth and take our customer service to an even higher level.”


Partnership Capital Growth, LLC, which focuses on investing in companies involved in healthy foods, health and wellness, sports and fitness and sustainable products and services, advised Bogs on the deal. Weyco was advised by Cleary Gull Inc.


Milwaukee-based Weyco Group’s principal brands are Florsheim, Nunn Bush, Stacy Adams and Umi, a line for children.


Last week, Weyco reported net sales reached $229.2 million in 2010, up 2% compared with $225.3 million in the prior year. Earnings from operations were $18.8 million, up from $16.8 million in the prior year.  Net earnings were $13.7 million, up from $12.8 million in 2009.