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 Posted: Mon 17:12, 02 Sep 2013 Post subject: Stride Rite to purchase Saucony Business BDN Maine |
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Stride Rite to purchase Saucony Business BDN Maine archive BDN Maine
BOSTON Stride Rite Corp,[link widoczny dla zalogowanych]. said Thursday it is acquiring Saucony Inc,[link widoczny dla zalogowanych]. for $170 million in a pairing of Massachusetts shoemakers that is expected to boost the smaller Saucony prospects amid industry consolidation,[link widoczny dla zalogowanych].
The cash deal comes 10 months after Saucony hired an investment bank to help it consider strategic options including a possible sale,[link widoczny dla zalogowanych].
John J. Shanley,[link widoczny dla zalogowanych], an athletics shoe industry analyst with Susquehanna Financial Group,[link widoczny dla zalogowanych], said Stride Rite has little overlap with Saucony products,[link widoczny dla zalogowanych], which include the Saucony brand, targeting serious runners, as well as Spot-bilt workplace shoes and Hind athletic apparel.
The deal is expected to extend the range of Stride Rite line,[link widoczny dla zalogowanych], which includes shoes sold under the Keds, Sperry Top-Sider, Tommy Hilfiger and Grasshoppers names.
Recent consolidation highlighted by Nike Inc. acquisitions of Converse,[link widoczny dla zalogowanych], Official Starter and Hurley International have made it difficult for niche players such as Saucony to realize savings bigger rivals enjoy from larger distribution networks and deals with manufacturers in China and big retailers such Wal-Mart, Shanley said.
Amid recent flat shoe-industry growth,[link widoczny dla zalogowanych], becoming harder for smaller brands like Saucony to compete,[link widoczny dla zalogowanych], Shanley said. very tough in today competitive environment with retailers getting much bigger. sales rose 22 percent last year to $166 million,[link widoczny dla zalogowanych], compared with $558 million for Stride Rite. Saucony net income rose 23 percent last year to $10.4 million.
Stride Rite expects the transaction to add to earnings and cash flow in 2006, excluding one-time costs.
transaction combines two leading footwear companies with strong balance sheets and cash flows,[link widoczny dla zalogowanych], similar corporate cultures,[link widoczny dla zalogowanych], and shared roots in the Greater Boston area dating back to the early 1900s, said David M. Chamberlain, Stride Rite chairman and chief executive.
Stride Rite Lexington headquarters is just 21 miles from Saucony offices in Peabody. The Boston area is also home to competitors Reebok,[link widoczny dla zalogowanych], Converse and New Balance.
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