Wolverine World Wide, Inc. has entered into a letter of intent to acquire the business and select net operating assets of Sebago, Inc. for cash. The acquisition is subject to the execution of a definitive agreement and is expected to close in October 2003. Additional terms were not disclosed.
“Sebago is recognized the world over as the premium nautical and classic hand sewn footwear brand, with a long history and great global heritage,” stated Timothy J. O'Donovan, Wolverine's President and CEO. “The acquisition of the Sebago business represents another step in the execution of our strategic plan, which is centered on marketing the world's strongest portfolio of non-athletic footwear brands. The Sebago brand competes in a premium segment of the market not currently served by any of our other brands.
“The brand's strength around the world is a true testament to the vision and dedication of the Wellehan family, which has been the brand's steward since its launch over 50 years ago. I am also pleased that Dan Wellehan, Sebago's CEO and majority owner, will assist with the business transition and act as a senior advisor and brand ambassador following the completion of the acquisition.”
Commenting on the transaction, Sebago's CEO Dan Wellehan added, “We are thrilled that the Sebago brand will become a part of the Wolverine World Wide family. We believe that Wolverine's 120-year heritage of building brands on a global basis will open new domestic and international growth opportunities for Sebago, and we look forward to even greater levels of future success.”
Wolverine reported that it expects the Sebago business to add over $30 million in revenues and be earnings neutral during the 2004 transition year.
