K-Swiss Inc. has signed a definitive agreement to acquire the remaining 43% equity interest in Palladium SAS for 5.0 million Euros in cash plus a potential earn out based on Palladiums EBITDA for 2012. K-Swiss had previously acquired a 57% equity interest in Palladium in July 2008, as well as the trademarks to the brand in the United States and Canada earlier in 2008. The purchase, which is expected to close later this month, will result in recognition of a non-operating loss of approximately $2.6 million during the quarter ending June 30, 2009.
Based in St. Priest, France, Palladium designs and sells fashion footwear.
Commenting on the announcement, Steven Nichols, chairman of the board and president, said, “We have been pleased with the early success of Palladium since our initial acquisition of majority ownership in mid-2008. With an imminent launch for the brand in the United States, this is the right time to exercise our option to acquire full ownership of Palladium. We have invested in the brand to prepare for the July launch and look forward to carefully growing Palladium with a very select distribution and an appropriate marketing program.”
