Deckers has signed an agreement to buy the Sanuk brand
Deckers has signed a definitive asset purchase agreement to acquire action sport and adventure footwear brand Sanuk.
The acquisition includes certain assets and liabilities of Sanuk USA and of C&C Partners, the exclusive licensee for the Sanuk brand in the US, Canada and Europe.
The total purchase price for the assets of both companies related to the Sanuk brand is an initial payment of approximately $120m (£74.4m) in cash subject to certain post-closing adjustments, and includes additional participation payments based upon performance over the next five years.
Deckers said the combined businesses generated in excess of $43m of unaudited net sales in 2010. Based on the expected closing in the third quarter of 2011, due to the seasonality of the business Deckers expects the acquisition of Sanuk to be modestly accretive to earnings for 2011, before transaction costs.
Sanuk will remain headquartered in Orange County, California and senior management will continue to manage the brand.
Sanuk was founded in 1997 by entrepreneur Jeff Kelley. It is now ‘one of the fastest growing footwear brands in the action sports, outdoor and sports markets’, Deckers said. Sanuk is currently available in more than 1,700 retailers in 40 countries and at sanuk.com, and enjoys diverse acceptance across multiple channels including in most surf/action sports retailers, outdoor retailers, specialty retailers and large chains.
Deckers’ president, chief executive officer and chairman of the Board of Directors, Angel Martinez, said: “Sanuk is an ideal addition to the Deckers family of brands. It’s a profitable, well-run business with a corporate culture similar to ours and provides substantial growth opportunities, particularly within the action sports market where it has a large and loyal customer base of active outdoor enthusiasts.
“Its authentic product collections complement our existing portfolio with minimal overlap, and it’s a brand that we believe has true global lifestyle potential.”
Kelley said: “We are excited to join forces with a company of Deckers’ calibre and culture. Deckers’ specialty and focus is and has always been footwear, and this expertise will help globalize and accelerate Sanuk’s growth.
“The management team at Deckers has a great track record of brand building, and we look forward to accessing the experience, operational expertise and global infrastructure they’ve built for their family of brands.”