Wolverine World Wide has unveiled extra measures as a part of its ongoing model portfolio transformation, that includes the divestment of the Hush Puppies mental property inside China, Hong Kong, and Macau, in addition to the sale of its US-based Wolverine Leathers business
In the phrases of Mike Stornant, Executive Vice President and Chief Financial Officer of Wolverine Worldwide, “These transactions are the latest actions in our ongoing effort to reshape our portfolio and goal our most significant alternatives. We proceed to streamline our organization and change into extra environment friendly, in order that we are able to direct larger sources into our progress manufacturers, pay down debt, and improve long-term shareholder worth.”
The sale of Hush Puppies emblems, patents, copyrights, and domains in China, Hong Kong, and Macau is about to happen by means of a definitive settlement with the present sublicensee, Beijing Jiaman Dress Co., Ltd., for an approximate sum of $58.8m. This transaction additionally features a License and Cooperation settlement that outlines mutual engagement and model stewardship of Hush Puppies within the specified area. Notably, Wolverine will retain possession and operation of the Hush Puppies model in all different world markets. The anticipated closing of this transaction within the coming weeks is contingent upon the satisfaction of customary closing circumstances.
“Our strategic approach in China, Hong Kong and Macau is to focus on our biggest brands, and selling the Hush Puppies intellectual property in these countries is a part of this strategy,” mentioned Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide. “Hush Puppies remains an important brand in our portfolio, and we are committed to growing it through strong global licensing partnerships and expanding our connections with local consumers. We look forward to partnering with Beijing Jiaman Dress and to ensuring the global success of Hush Puppies.”
Furthermore, the Company has efficiently concluded the sale of its US-based Wolverine Leathers business to its long-time buyer, New Balance, for complete proceeds of roughly $6 million. As a part of this transaction, Wolverine has transferred its US tannery contracts to New Balance, whereas actively exploring options for the non-US Wolverine Leathers business.
These recent transactions build upon the Company’s prior sale of Keds to Designer Brands, Inc., the guardian firm of footwear retailer DSW, in addition to the beforehand disclosed exploration of strategic options for Wolverine’s Sperry model.
