The Timberland Company announced that it has completed its acquisition of SmartWool Corporation. The deal was originally announced on November 7, 2005, for a total purchase price of approximately $82 million. The SmartWool acquisition reflects continued progress in Timberland's strategy of extending its capabilities to new brand growth platforms to drive growth and shareholder value.
As previously disclosed, SmartWool's 2005 annual revenues are anticipated to be approximately $42 million excluding sales of Timberland® footwear with SmartWool® linings. Timberland anticipates this transaction will add $0.02 to $0.03 to its earnings per share in 2006, with benefits weighted toward the second half of the year. The transaction will have minimal impact on fourth quarter 2005 earnings.
“Timberland and SmartWool share a common heritage grounded in functional and purposeful innovation, and the combination of both brands will enable us to serve our growing customer bases with expanded offerings of socks, footwear, apparel and accessories,” stated Jeffrey B. Swartz, Timberland's President and Chief Executive Officer. “We're delighted to welcome the SmartWool team to Timberland and look forward to working together to accelerate and broaden SmartWool's brand reach.”
