TOPEKA, KS-Collective Brands Inc., which includes companies such as Payless ShoeSource, has agreed to be bought for $21.75 per share, or about $2 billion including the assumption of debt. A consortium of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital has formed an acquisition entity to complete the takeover, though the firm will be split up into two seperate groups after the sale
Worldwide, based in Rockford, MI, will take over the Performance + Lifestyle Group, a group that earned $1 billion last year and which includes brands such as Sperry Top-Sider, Saucony, Stride Rite and Keds. Wolverine’s brands already include Hush Puppies, Bates, CAT and Hytest.
Blum and Golden Gate, both based in San Francisco, will jointly acquire the operations of Payless and Collective Licensing International, a group that markets products to young people. Payless, with more than 4,300 store and CLI combined had revenue in the past fiscal year of $2.4 billion. “We are very pleased to be acquiring one of the largest footwear retailers in the world,” said Josh Olshansky, a managing director with Golden Gate.
Wolverine received financing commitments from JP Morgan Chase Bank and Wells Fargo Bank. Blum and Golden Gate received a commitment for a revolving credit facility from the Retail Finance Division of Wells Fargo Capital Finance, part of Wells Fargo & Co.
Perella Weinberg Partners LP is the financial advisor to Collective Brands, and Sullivan & Cromwell LLP is the Company’s outside legal counsel. Wolverine’s financial advisor is Robert W. Baird and Co.; Kirkland & Ellis LLP is legal advisor to Blum and Golden Gate, and Barnes & Thornburg LLP is legal advisor to Wolverine.
In another big retail deal announced Wednesday, Ascena Retail Group and Charming Shoppes Inc. have entered an $890-million agreement for Ascena to buy Charming Shoppes, the parent company of Lane Bryant.
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