The Stride Rite Corporation has completed the acquisition of Saucony, Inc. for a total purchase price of approximately $170 million in cash. The acquisition expands Stride Rite's portfolio of nationally recognized footwear brands, and is expected to be accretive to Stride Rite's earnings starting in 2006.
Under the terms of a definitive agreement announced on June 2, 2005, and approved today by Saucony shareholders, each Saucony Class A and Class B share will be converted into the right to receive $23.00 in cash without interest. The acquisition is being financed with cash on hand and borrowings under a new $200 million revolving credit facility led by Bank of America, N.A. The total purchase price of approximately $170 million is based on the current number of shares of Saucony's common stock outstanding and net option value. Existing cash at Saucony reduces the net transaction value to approximately $140 million.
Saucony brings to Stride Rite a business with 2004 revenues of approximately $167 million in performance athletic footwear, apparel and accessories under the Saucony, Saucony Originals, Hind and Spot-bilt brands.
“This is an exciting day for both Stride Rite and Saucony,” said David M. Chamberlain, Stride Rite's Chairman and Chief Executive Officer. “The addition of Saucony to our portfolio of nationally recognized footwear brands provides us with a well-known technical athletic brand with loyal customers and solid growth prospects. We welcome the employees and business partners of Saucony to the Stride Rite family. This transaction combines two leading footwear companies with strong balance sheets and cash flows, similar corporate cultures, and shared roots in the greater Boston area dating back to the early 1900s.”
