Wolverine World Wide, Inc. announced that Keds, LLC, its wholly-owned subsidiary, has sold the Champion trademarks for footwear in the United States and Canada to its longtime licensee, HanesBrands, Inc, for $90 million in cash.
Under the agreement, Wolverine Worldwide retains a perpetual license to continue using the Champion trademark on certain footwear, including the Keds Champion sneaker that has been a mainstay of its Keds brand for decades.
The transaction also successfully resolves outstanding litigation between the parties.
“This transaction represents a unique opportunity to simplify our business model while at the same time securing a significant amount of cash at a meaningful multiple of future expected royalty streams,” said Brendan Hoffman, Wolverine Worldwide’s president and CEO. “Also, by retaining a perpetual license, our Keds brand will continue to market and sell the iconic Keds Champion sneaker that its consumers have worn and loved for generations.”
Wolverine World Wide’s portfolio of footwear brands includes Merrell, Saucony, Sweaty Betty, Sperry, Hush Puppies, Wolverine, Keds, Chaco, Bates, Hytest, and Stride Rite.
Photo courtesy Keds