K-Swiss Inc. plans to acquire French fashion footwear company Palladium SAS. The company will buy a 57% stake in Palladium from Palladium shareholders by July 1 at a price of 5.3 million euros, or $8.3 million, including a loan of 3.6 million euros, or $5.6 million.
In a separate transaction, K-Swiss previously acquired the Palladium trademarks for the United States and Canada for $6 million in cash.
Palladium has projected its revenues to be 15 million euros, or $23.6 million, for the fiscal year ending Sept. 30.
“The acquisition of Palladium is a strong strategic fit for us,” said Steven Nichols, chairman and president of K-Swiss. “This growth investment is marginally accretive and consistent with our stated goal of allocating capital opportunities that offer long-term growth.”
K-Swiss recently reported a 60.5% drop in first quarter earnings to $7.1 million, or 20 cents a share, from $18 million, or 51 cents, a year ago