Rocky Shoes & Boots, Inc. has completed the acquisition of EJ Footwear Group. The total purchase price, including a closing date working capital adjustment, for 100% of the equity interested of EJ Footwear was $89.5 million in cash plus 484,261 shares of Rocky common stock, which was valued at $10 million at the date of the definitive agreement.
In connection with the transaction, Rocky entered into agreements today with GMAC Commercial Finance LLC and American Capital Strategies, Ltd. for agented credit facilities totaling $148 million to fund the acquisition and replace its existing revolving credit facility.
Mike Brooks, Chairman and Chief Executive Officer of Rocky Shoes and Boots, stated, “We are very excited to have completed this historic transaction and we look forward to capitalizing on the many opportunities this partnership offers. The combination of Rocky and EJ Footwear significantly improves our operating platform, creates a portfolio of leading niche brands, further strengthens our position in the marketplace and enhances our long-term growth prospects. We are focused on maximizing the full potential of this acquisition and dedicated to returning value to our shareholders.”
