Companies

Wolverine Worldwide sells Asian assets for 70 million USD

Dec 20, 2023 United States

As part of its ongoing transformation strategy, the US-based footwear company announced the sale of some assets in Asia, which will generate a total of 70 million US dollars in proceeds

Wolverine will sell its minority ownership interest in the entity that owns the Saucony intellectual property in China and its equity interest in the Merrell and Saucony joint venture in China for 61 million US dollars. The assets will be sold to Xtep, with whom Wolverine has formed a joint venture to launch the two brands in China in 2019.

The Chinese company will now exclusively carry out the development, marketing, and distribution of footwear, apparel, and accessories for both brands in China. “The new operating model is expected to further leverage Xtep’s expertise and significant resources in China, unleashing the brands’ full potential in this key market while allowing Wolverine Worldwide to focus on brand-building by developing awesome products and telling amazing stories across its global footprint”, reads the company’s statement.

In addition, the company has entered into a definitive agreement to sell its Asia-based Wolverine Leathers business to Interhides Public Company Limited, a current materials supplier to the company, for about 9 million US dollars. This transaction completes Wolverine’s objective to divest the Wolverine Leathers business.

“We’ve taken fast, bold, and decisive actions to stabilize the Company (…). Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet. While our work isn't done, we enter the new year with a clear vision for the future, enhanced ability to invest in our brands and platforms, and ultimately, a better position to deliver stronger returns for our shareholders”, commented Chris Hufnagel, President and Chief Executive Officer.

These moves are in line with the actions that Wolverine has taken this year. It sold Keds in February for over 90 million US dollars; Hush Puppies’ intellectual property in China, Hong Kong, and Macau in August 2023 for about 58.8 million US dollars; and the US Wolverine Leathers business in August 2023 for approximately 6 million US dollars.

Image Credits: www.ispo.com

Asia China United States Companies Footwear Merrell Saucony Wolverine Worldwide, Inc.