The Stride Rite Corporation late Friday announced that it had completed the acquisition of Saucony, Inc. 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. The completion of the deal came after Saucony shareholders voted overwhelmingly in favor of the deal. Approximately 86% of Sauconys Class A Common Stock and approximately 82% of the company's Class A Common Stock and Class B Common Stock, voting together as a single class.
Saucony also said it will return for an eighth year as an official sponsor of the Los Angeles Marathon in March 2006, representing a “10-year-long commitment to the Los Angeles running community.”
