Payless ShoeSource, Inc. has completed the acquisition of The Stride Rite Corporation, including the Stride Rite, Keds, Sperry Top-Sider, Tmmy Hilfiger Footwear, and Saucony brands, and has officially changed its name to Collective Brands, Inc.
The acquisition of Stride Rite was approved by its shareholders at a special meeting held on August 16, 2007, with 80.7% of its shareholders voting in favor of the transaction. The transaction, valued at approximately $900 million, consisted of an aggregate $800 million payment to Stride Rite shareholders, option holders and other equity holders, as well as the repayment of existing debt and other transaction costs. It was financed with approximately $175 million in cash-on-hand and a $725 million term loan B at a variable rate of currently 8.3% over 7 years.
David Chamberlain, CEO for The Stride Rite Corp., has retired from day-to-day operations of the company and will serve as an outside consultant to Matt Rubel, CEO of Collective Brands, Inc. Rick Thornton will continue to serve as president and COO of the Stride Rite unit. Matt Rubel will continue to head the Payless ShoeSource unit, and Bruce Pettet will continue to lead the Collective Licensing unit.
