Wolverine World Wide recently completed the sale of its Sperry brand and associated assets to Authentic Brands Group and the ALDO Group. The transaction, valued at $130 million, is part of Wolverine’s ongoing efforts to divest non-core businesses and focus on growth brands.

The deal officially closed on January 10th, with Wolverine expecting to generate the full proceeds in the first quarter. These funds will be primarily used to pay down debt, a crucial step in the company’s turnaround plan.

CEO Chris Hufnagel expressed his satisfaction with the sale, stating that it aligns with Wolverine’s strategic objectives. In May, the company announced its intention to explore alternatives for the boat-shoe brand, leading to this divestiture. Previously, Wolverine also sold its Keds brand in late 2022 as part of its focus on brands like Merrell, Saucony, and Sweaty Betty.

Authentic Brands Group boasts an extensive portfolio of clothing and lifestyle brands, including Eddie Bauer, Forever 21, and Nautica. Meanwhile, the ALDO Group is a well-known fashion retailer operating under brands such as Aldo, Call It Spring, and GLOBO.

According to Wolverine, the Sperry business generated $207.2 million in revenue during fiscal 2023. However, it reported an operating loss of $10.3 million within the same period. As part of the sale, Authentic Brands acquired all outstanding equity of the Sperry business for $70 million. Additionally, Wolverine and Authentic Brands entered into non-exclusive licensing agreements for certain intellectual property related to the Sperry brand and other company brands.

In a separate transaction, ALDO acquired inventory and other assets associated with the Sperry brand for $27 million, along with a potential $5 million performance add-on. Notably, Wolverines retains the option to sell any remaining Sperry products not purchased by ALDO, as stipulated in the purchase agreement.

Overall, this divestiture marks a significant step for Wolverine World Wide, allowing them to streamline their business and focus on brands with high growth potential.

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