airwalk/vision/sims to split from collective?

Collective Brands Inc.,
owners of Collective Licensing (Airwalk, Vision Street Wear, and Sims),
and some serious non endemic weight like Payless ShoeSource, Keds, and
Sperry Top-Sider, is nearing the end of a month-long auction that could
result in the break up of its brands.

Golden Gate Capital, an
investor in PacSun, and bootmaker Wolverine are working together to
secure Collective against South Korean conglomerate E-Land Group. If
Golden Gate and Wolverine win the auction, they plan to split up the
brands, with Wolverine taking the footwear labels including Airwalk,
Saucony, and Vision, according to an article in the Wall Street Journal. There’s no word on the future of Sims at this point.

According to WSJ; “A deal could be announced within a week, said one person familiar with the matter.”


  • edited April 2012
    When investors see a group of brands under one parent comapny & want to buy into it, it simply means each of those brands are worth more individually, than they are as a group.

  • Collective Brands Inc.,
    which owns Payless ShoeSource as well as multiple iconic shoe brands,
    will be split in two by multiple buyers in a purchase valued at $2
    billion. Wolverine Worldwide, Blum Capital and Golden Gate Capital
    formed an acquisition company to buy Collective for $21.75 a share, in a
    deal that is predicted to close early in Q4. The price represents a
    104% premium on Collective’s 30-day average stock price before the
    company’s announcement that it was looking into a strategic and
    financial shift for its operations on August 24, 2011.

    February, the company said it suffered a net loss of $154.1 million for
    the full fiscal year, after shutting the doors of 352 Payless and Stride
    Rite stores.

    Blum and Golden Gate will get Payless and Collective
    Licensing International, which includes more than 4,300 Payless stores
    globally, and brought in $2.4 billion in revenue last year.

    Worldwide will end up with Collective’s Performance + Lifestyle Group,
    which includes brands like Sims, Vision Street Wear and Airwalk. The
    transaction is expected to have minimal net impact on Wolverine’s 2012
    results, but is expected to generate earnings per share accretion in the
    ranges of $0.25 to $0.40 in 2013 and $0.50 to $0.70 in fiscal 2014.

    significant acquisition is an incredibly positive statement about the
    strength of our Company, our proven business model and confidence in our
    ability to grow both existing and newly acquired brands around the
    world,” said Don Grimes, Senior Vice President and Chief Financial
    Officer.  “This transaction, because of both the significant
    opportunities for future growth and the historically low interest rate
    environment, promises to deliver meaningful earnings accretion and
    generate a very attractive return for Wolverine shareholders.  Our
    historically strong cash flow, combined with the incremental
    profitability and cash flow of the newly acquired brands, will give us
    the ability to aggressively reduce debt over the next few fiscal years.”

    For Wolverine’s full press release on its acquisition, click here.

  • there you go.. each label is worth more individually than they are as a whole

    they are carrying a lot of debt though
  • yea when they bought payless they took in alot of debt
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