Announces agreement to sell Hush Puppies intellectual property in China, Hong Kong and Macau
Sale of American Leather Business
ROCKFORD, Mich. – (BUSINESS WIRE) – Wolverine World Wide, Inc. (NYSE: WWW) today announced additional steps in the ongoing transformation of its brand portfolio, including the sale of Hush Puppies in China, Hong Kong and the U.S. intellectual property. Macau, and sold the US Wolverine Leathers business.
“These transactions are the latest in our ongoing effort to reshape our portfolio and target the opportunities that make the most sense,” said Mike Stornant, Wolverine Worldwide Executive Vice President and Chief Financial Officer. Dedicate resources to our growing brands, pay down debt and enhance long-term shareholder value.”
The company has entered into a definitive agreement to sell Hush Puppies’ trademarks, patents, copyrights and domain names in China, Hong Kong and Macau to its current sublicensee, Beijing Jiaman Clothing Co., Ltd. for approximately US$58.8 million. As part of the deal, the parties entered into a licensing and partnership agreement that governs the mutual engagement and brand management of the Hush Puppies brand in the region. Wolverine will continue to own and operate the Hush Puppies brand in the rest of the world. The transaction is expected to close in the coming weeks, subject to customary closing conditions.
“Sales of the Hush Puppies intellectual property in these countries is part of our strategic approach in China, Hong Kong and Macau to focus on our largest brands,” said Chris Hufnagel, President and CEO of Wolverine Worldwide. “Hush Puppies remains Hush Puppies is an important brand in our product portfolio and we are committed to growing it through strong global licensing partnerships and expanding our connection with local consumers. We look forward to working with Beijing Jiaman Clothing to ensure the success of Hush Puppies globally. “
The company also completed the sale of its US Wolverine Leathers business to its longtime customer, New Balance, for gross proceeds of approximately $6 million. The company transferred Wolverine’s US tannery contract to New Balance and continued to explore alternatives for its non-US Wolverine Leathers business.
The transaction announced today follows the company’s recent completion of the sale of Keds to Designer Brands, Inc., parent company of footwear retailer DSW, and the previously announced strategic replacement process for Wolverine’s Sperry brand.
About Wolverine Worldwide
Founded in 1883 with a firm belief in the possibility of opportunity, Wolverine World Wide, Inc. (NYSE: WWW ) is the world’s leading brand of casual, active lifestyle, work, outdoor, athletic, One of the marketers and licensors of children’s footwear and uniform footwear and apparel. Through a diverse portfolio of highly recognized brands, our products are designed to support, engage and inspire consumers. The company’s product portfolio includes Merrell®, Saucony®, Sperry®, Sweaty Betty®, Hush Puppies®, Wolverine®, Chaco®, Bates®, HYTEST® and Stride Rite®. Wolverine Worldwide is also the global footwear licensor of popular brands Cat® and Harley-Davidson®. For 140 years, the company has been headquartered in Rockford, Michigan, and its products have been sold by leading retailers in the United States and approximately 170 countries around the world. For more information, please visit our website at www.wolverineworldwide.com.
forward-looking statement
This press release contains forward-looking statements, including the following: Timing of sale of Hush Puppies assets in China, Hong Kong and Macau; Company’s commitment to the Hush Puppies brand; Exploration of alternatives to the Wolverine Leathers and Sperry brands outside the United States; Reshaping the Company’s investment Combined efforts and the expected benefits of those efforts. In addition, words such as “estimates,” “anticipates,” “believes,” “forecasts,” “steps,” “plans,” “forecasts,” “priorities,” “projects,” “prospects,” “likely,” etc., ” Words such as “expect,” “intend,” “should,” “will,” “confident,” variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Risk Factors”) which, in their and the degree is unpredictable. Risk factors include, but are not limited to: changes in general economic conditions, employment rates, business conditions, interest rates, tax policies, inflationary pressures, and other factors that affect the company’s product sales markets and regional consumer spending; , apparel and direct-to-consumer markets; inability to maintain a positive brand image and to predict, understand and respond to changing footwear and apparel trends and consumer preferences; inability to effectively manage inventory levels; import and export country duties, tariffs, increases or changes in quotas or applicable assessments; fluctuations in foreign currency exchange rates; currency restrictions; supply chain or other capacity constraints, production disruptions, quality issues, price increases or other risks associated with foreign sourcing; contract manufacturers’ raw materials, inventory, services and the cost and availability of labor; the impact of COVID-19 and other health crises on the Company’s business, operations, financial performance and liquidity, including the duration and extent of such effects, and numerous factors that the Company cannot accurately predict, including: the health crisis , negative impact on global and regional markets, unemployment, consumer confidence and discretionary spending, government actions and the impact of the health crisis on the company’s supply chain and customers; workforce disruption; changes in relationships with key wholesale customers, including loss of Significant wholesale customers; Risks associated with significant investment and performance in the Company’s direct-to-consumer business; Risks associated with expansion into new markets and complementary product categories; Effects of seasonal and unpredictable weather conditions; Increase in the Company’s effective tax rate; Licensed failure of individuals or distributors to meet planned annual sales targets or to pay the Company in a timely manner; the risk of doing business in developing countries and in politically or economically unstable regions; the ability to obtain and protect intellectual property rights owned or licensed ; regulatory, regulatory and legal process implications and legal compliance risks, including compliance with federal, state and local laws and regulations related to the protection of the environment, environmental remediation and other related costs, and litigation or other legal proceedings related to the protection of the environment or the environment Impact on human health; potential compromise of the Company or its suppliers’ databases or other systems containing certain personal information, payment card data, or proprietary information as a result of a cyber attack or other similar event; strategic actions, including new initiatives and joint ventures, acquisitions and dispositions, and the company’s success in integrating acquired businesses and implementing new initiatives and joint ventures; the risk of impairment of goodwill and other intangible assets; changes in future pension funding needs and pension payouts and other factors discussed in the Company’s reports filed with the Securities and Exchange Commission and its attachments. The above risk factors, as well as other existing risk factors and new risk factors that arise from time to time, could cause actual results to differ materially from those contained in any forward-looking statements. Given these and other risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictions of actual results. In addition, the company undertakes no obligation to update, revise or clarify forward-looking statements.
Contact information
Dave Lachana, (616) 863-4226
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