Stride Rite has acquired Footwear Ltd., a manufacturer of soft-soled leather footwear for babies and young children, for a purchase price of $27.5 million in cash.
Founded in 1994 by Sandra Wilson and based in Burnaby, British Columbia, Canada Robeez Footwear has grown over the past decade to become the leading worldwide manufacturer of soft-soled footwear for babies and young children. Recommended by experts and the first choice of many parents, Robeez shoes and booties are available in a wide range of designs and are sold internationally at thousands of boutiques and specialty stores, including Nordstrom, Saks Fifth Avenue, Bloomingdale’s and Neiman Marcus, as well as in over 350 Stride Rite retail and licensed partner stores. Robeez is expected to generate annual net sales of approximately $27 million (CDN$30 million) for the fiscal year ending August 31, 2006.
“Robeez is a high-quality, innovative, well-known name in children’s footwear with solid growth prospects in North America and internationally and we are delighted to add it to our portfolio of nationally recognized lifestyle brands, including Stride Rite, Keds, PRO-Keds, Saucony, Sperry Top-Sider and Tommy Hilfiger Footwear,” said David M. Chamberlain, Stride Rite’s chairman and chief executive officer. “We are also very pleased that Robeez founder Sandra Wilson will remain with the Company as a consultant, as her ongoing participation will ensure the continuation of the unique Robeez design and brand vision.”
“We are extremely excited for Robeez to partner with Stride Rite, North America’s leader in premium children’s footwear,” said Sandra Wilson, founder and chair of Robeez. “Stride Rite’s industry-leading expertise, capital strength and careful nurturing of its well-known brands will provide a strong platform for us to execute our growth strategies and capitalize on our current momentum. Stride Rite shares the same commitment to high quality and innovative design that our customers and retailers expect. We look forward to working with the Stride Rite team to help Robeez reach its full potential.”
Stride Rite financed the transaction with a combination of cash on hand and existing credit facilities.
Lane, Berry & Co. International, LLC acted as financial advisor to Stride Rite in connection with this transaction and rendered a fairness opinion to Stride Rite’s Board of Directors. Capital West Partners acted as financial advisor to Robeez in connection with this transaction.
