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utdoor footwear group Wolverine Worldwide is to
acquire the performance and lifestyle group of
Collective Brands. Wolverine has said it expects to
complete the deal in the autumn.
Brands included in the performance and lifestyle group of
Collective are Sperry Top-Sider, Saucony, Stride Rite and Keds.
This part of Collective Brands had combined revenue of more
than $1 billion in its most recent financial year. Under
Wolverine’s ownership, the brands will continue to be run from
their existing headquarters in Lexington, Massachusetts, the
companies stated.
“Our Company is thrilled to add these four iconic brands to
our proven global platform,” said Wolverine’s chief executive,
Blake Krueger. “This transaction provides dynamic portfolio
expansion and diversification, and significant additional
horsepower in five of our key targeted growth areas: women’s,
athletic, casual, kids’ and retail.”
Collective Brands’ Payless ShoeSource and Collective
Licensing International divisions will also have new owners, with
investment firms Blum Capital and Golden Gate taking over, but
from a manufacturing and supply chain point of view, the
acquisition of the four performance and lifestyle brands by
Wolverine is the more interesting development. This, at least, is
the view of Blake Krueger.
“This is a transformational moment in our company’s history,”
the Wolverine chief executive says. “This is truly game-changing
for Wolverine as it allows us to add over $1 billion of top-line
sales to our business revenue. We are thrilled to add these four
iconic brands to our portfolio and I could not imagine a better
fit. The acquired brands complement our existing brands in a
remarkable way. I believe we have built the world’s pre-eminent
collection of lifestyle brands.”
Mr Krueger explains that his company has spent a
considerable amount of time over the past four years “seeking
acquisition options” to diversify its portfolio in targeted consumer
areas. When the performance and lifestyle group, which he
shortens to PLG, becomes part of the Wolverine portfolio in the
autumn, Mr Krueger’s group will comprise 16 brands in total and
will cover “all major product categories” – athletic, street, outdoor
and work, across all ages, all lifestyles and both genders. As well
as the four brands coming in from Collective, the Wolverine
portfolio will include footwear brands Hush Puppies, Chaco,
footwear for the Patagonia and Caterpillar brands, the Wolverine
brand itself, Merrell, Sebago, Cushe, Harley-Davidson and, in the
workwear sector, HyTest and Bates. It will also continue to
include the Track n’ Trail retail chain.
It means Wolverine Worldwide will be a $2.5 billion footwear
group, with what the chief executive calls “numerous
opportunities for further growth”. He makes the point again that
the fit between Wolverine’s existing portfolio and the PLG
brands is good. Sperry, Saucony and Keds have a powerful
following among women, he observes, and will prove to be “a
great complement” to Merrell, Chaco and Hush Puppies, while
Saucony will also bring opportunities for the group to make
more of its global partnerships in the performance and athletic
space and will allow the group, combined with Merrell, to
provide “a powerful vehicle in the running, training, trail,
minimalist and barefoot categories”.
Supply chain partners
“We’ve been global since the international expansion of Hush
Puppies in 1959,” Mr Krueger continues. “In 2011, Wolverine’s
international operations provided nearly a third of our unit
volume, whereas the PLG business is largely in North America,
with only 10% of revenue coming from outside.” He says his
group will be able to change this through its established
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THE GAME CHANGES
MAY/JUNE 2012 | www.footwearbiz.com
The Wolverine 1,000 Mile boot. The group says it
places a high value on heritage and authenticity.
CREDIT: WOLVERINE WORLDWIDE